BASIC PERSONAL

1
BASIC PERSONAL BUSINESS TAX RETURN ANALYSIS
SEMINARPresented by Osburn Associates, LLC
2
Author/Lecturer

• DAVID L. OSBURN, MBA, CCRA
• David Osburn, is the founder of Osburn
  Associates, LLC that specializes in providing
  seminars, webinars, and keynote speeches to CPAs,
  bankers, attorneys, and credit managers on topics
  such as Banking/Finance/Credit, Negotiation
  Skills, Marketing, and Management.
• David also functions as a Contract CFO and works
  with financial institutions, CPA firms,
  construction companies, and real estate
  developers. He is also an adjunct faculty member
  of both an accredited MBA program and the
  accounting department of a community college with
  over 29 years of teaching experience.
• Davids extensive professional background
  includes 15 years as both a Business Trainer and
  Contract CFO and 16 years in banking (commercial
  lending) including the position of Vice President
  Senior Banking Officer.
• David has an MBA in Finance/Marketing
  from Utah State University and a BS degree in
  Finance from Brigham Young University. He is also
  a graduate of the ABA National Commercial Lending
  School held at the University of Oklahoma.
• David also holds the professional designation of
  Certified Credit and Risk Analyst (CCRA) as
  granted by the National Association of Credit
  Management (NACM).
• Osburn Associates, LLC
• A Business Training Contract CFO Firm
• David L. Osburn, MBA, CCRA
• Managing Member
• 7426 Alamo Summit Drive

3

• BASIC PERSONAL BUSINESS
• TAX RETURN ANALYSIS SEMINAR
• I. PERSONAL 1040 FEDERAL TAX RETURN
• II. PERSONAL CASH FLOW ANALYSIS
• III. BUSINESS TAX STRUCTURE C CORP, S CORP, LLC
• IV. BUSINESS TAX RETURN ANALYSIS
• V. CURRENT TAX CODE, FRAUDULENT RETURNS, RISK
• FACTORS MARKETING
  OPPORTUNITIES

4

• I. PERSONAL 1040 FEDERAL TAX RETURN
• A. THE BASICS WHAT ARE THE MAIN COMPONENTS?
• Basic information Name, address, exemptions
• Total (Gross) Income Wages, salaries,
  interest, dividends, alimony received, business
  income, capital gains, rental income, etc.
• Adjustments to Gross Income Educator expense,
  IRA
• deduction, alimony paid, etc.
• Adjusted Gross Income (AGI)
• Itemized Deductions (Schedule A- ex. Mortgage
  interest)

5
Exemptions Taxable
Income Tax Federal Income Tax
Withheld Overpaid (refunded) or Amount you
Owe! B. BASIC FORMS 1040
EZ 1040 Schedule A, B, C, D, E, F

6

• C. 1040 TAX RETURN EXAMPLE (SEE
  EXHIBIT 1)

7

• II. PERSONAL CASH FLOW ANALYSIS
• A. TRUE CASH FLOW (ADJUSTED FOR TAXES)
• Wages/Salary Interest
  Dividends Business Income
• (including depreciation
  interest) Capital Gains (less Loss)
  Rental Real Estate Royalties Partnership
  (LLC) (K-1s)
• Other Income (Unemployment, etc.)
  Total Income
• Less Federal State Taxes
• Cash Flow Available for Debt
  Service
• Less
• Debt Service (PI)
• Margin
• DCR

8

• III. BUSINESS TAX STRUCTURE
• A. C CORPORATION
• Form 1120 (Income Statement, Balance
  Sheet)
• Double Taxation
• B. S CORPORATION
• Form 1120S (Income Statement, Balance
  Sheet)
• No Double Taxation

9

• LIMITED LIABILITY COMPANY (LLC)
• A. Combines the Benefit of a Traditional C
  corporation with a
• partnership
• B. Form 1065
• C. Income Statement, Balance Sheet

10

• IV. BUSINESS TAX RETURN ANALYSIS
• PREPARATION OF CASH FLOW ANALYSIS
• Net income interest expense taxes
  depreciation
• amortization (EBITDA)
• Less
• Debt Service (PI)
• Margin
• DCR

11

• A. BUSINESS TAX RETURN ANALYSES (SEE EXHIBIT 2,
  3, 4)

12

• V. CURRENT TAX CODE, FRAUDULENT RETURNS, RISK
• FACTORS MARKETING
  OPPORTUNITIES
• A. CURRENT TAX CODE EVER CONSISTENT WHILE
  AT THE
• SAME TIME EVER CHANGING!
• SAME MODEL, JUST NEW
  NUMBERS/LEVELS/TECHNOLOGIES
• EX. DEPRECIATION FORMULAS
• EX. E-FILE

13

• B. TAX UPDATES AND LIMITS (See 2014 Business Tax
  Extensions Updates)

14

• C. FRAUDULENT RETURNS
• Ex. Two sets of returns
• Ex. Numbers do not
  add up
• Ex. Numbers are not
  typical (unusual level of deductions, etc.)
• Ex. Listen to what
  the customer tells you and does not tell you!

15

• D. TAX RETURN ANALYSIS MARKETING
  OPPORTUNITIES
• WHAT DO THE RETURNS
  TELL US?
• Ex. Marital
  status
• Ex. Number of dependents
• Ex. Where is
  the customer on the life cycle?
• Ex. What type
  of products would fit the customers needs?
• 
  (Personal Business)