Self-Employed Borrower: Case Study Part II: Completing the Form 91 with Business Tax Returns...

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Session 2 continues to take the participant through a review of Freddie Mac's Form 91. The participant will calculate the qualifying income for a fictitious couple by entering their tax return data on the Form 91. For more info: www.nafcu.org/genworth

transcript

Tax Return Review Using Form 91 Case Study Part 2

©2012 Genworth Financial, Inc. All rights reserved.

Objective

Continuation of Freddie Mac’s Form 91 to calculate‏supportable income for self-employed borrowers using K-1’s and Business tax returns.

Complete Freddie Mac’s Income Analysis Form 91‏

– Income from Partnership and S Corp K-1’s

– Review Business Tax Returns

1 Form 91 Business Returns

Form 91 Business Returns

The Case Study… The Case Study is a married couple John & Mary

Homeowner

Mary receives a W2 & a K 1 from a business she owns

67% of called Zen Today, Inc. We will calculate the

income from the K-1 in today’s session.

Mary also operates a Sole Proprietorship that she

operates out of their home. We calculated that in Case

Study Part I.

John owns 58% of an LLC called Recycle Fitness. The

LLC files a form1065 and issued John a K 1. He declares

unreimbursed expenses against this income. We will

calculate this income in today’s session.

Mary & John also own a Rental Property and a Apple

Orchard. This income was calculated in Case Study Part

I.

2

Form 91 Business Returns

Income Analysis Form 91

http://freddiemac.com/learn/uw/form_91.html

This is an interactive tool, you can enter data and

The website will do the calculations but remember

Garbage in Garbage out!

3

Cheat Sheet

Form 91 Business Returns 4

Income Analysis Form 91 Cheat Sheet

Completed Sections 1-8 in

Case Study Part I Personal

Returns

Form 91 Business Returns 5

Income Analysis Form 91- Partnerships, S Corps

and Corporations-Including K-1s

Form 91 Business Returns 6

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-)_____ (+/-)_______

Net Rental RE Income or Loss (+/-)_____ (+/-)_______

Guaranteed Payments to Partner (+)______ (+/-)_______

9. Partnership Schedule K-1- (Form 1065)

Line 9

2010 2011

7

www.fanniemae.com

Partnerships‏

Income or Loss Reported on IRS Form 1065, Schedule K-1‏

A borrower’s share of income (or loss) from a partnership, LLC, or S‏

corporation is reported on IRS Form 1065, Schedule K-1.

Ordinary income reported on Schedule K-1 may be included in the‏

borrower’s cash flow only if:

– the borrower has a documented, consistent, and stable history of withdrawals or

cash distributions of income from the business,

– the business has positive sales and earnings trends,

– the business has adequate liquidity to support the withdrawal of earnings, and

– the borrower’s ownership and access to the income is documented by a

partnership agreement or corporate resolution.

If the borrower has a two-year history of receiving “guaranteed payments to‏

the partner” from a partnership or a LLC, these payments can be added to

the borrower’s cash flow.

8

:

B3-3.3.1-08, Income or Loss Reported on IRS Form 1065, Schedule K-1 (04/01/2009)

SEB-

Master

www.freddiemac.com

9 Form 91 Business Returns

Business Classifications

Partnership (General or Limited)

Two or More Partners‏

Business Income Reported on Form 1065‏

Personal Income Reported on Schedule E and K-1‏

Income Tax at a Personal Rate‏

All owners are issued a K-1 which is attached to the business tax return or the 1065‏

Advantages

– Taxed at a Personal Rate (Partnership Pays No Tax on Income)

– Limited Partnership - Only Liable for Amount Invested

Disadvantages

– General Partnerships Have Unlimited Personal Liability for Partnership Debts

and Losses

10 Form 91 Business Returns

Form 91 Business Returns

1065 Partnership

Line 22 Ordinary Income

$_________

K1

%

Line 1 Ordinary Income

$_________

Schedule E page 2

Part II

Net Income $_______

1040

Line 17 Net Income Sch.E

*$_________

*Taxed at a personal rate

L

11

Form 1065 / Partnership Return

.Five pages long‏

:First page follows the typical tax form pattern‏

– Income listed, deductions taken, taxable income/loss derived.

.Second, third- fifth pages are Schedules‏

– Every partnership completes the schedules, so they are part of the form.

12 Form 91 Business Returns

Form 1065 / Partnership Return

Income types listed.

Total on line 8.

Deductions taken away.

Taxable or net profit/loss.

13 Form 91 Business Returns

Form 91 Business Returns

1065 Partnership

Page 30

14

Form 91 Business Returns

1065 Partnership

Line 22 Ordinary Income

$_________

K1

%

Line 1 Ordinary Income

$_________

Schedule E page 2

Part II

Net Income $_______

1040

Line 17 Net Income Sch.E

*$_________

*Taxed at a personal rate

L

15

Form 91 Business Returns

K-1 /Form 1065

Partners % of Ownership

Section J

Ordinary Income/Loss

Line 1

Withdrawals and

Distributions

Section L and Box 19

Guaranteed Payments

to Partners Line 4

Type of Partner (G)

16

Rental and Other Rental

Income/Loss

Lines 2 and 3

Form 91 Business Returns

1065 Partnership K-1

Page 29

17

Form 91 Business Returns

1065 Partnership K-1

Page 29

18

1065 Partnership K-1

?Did John receive a distribution‏

Page 29

19 Form 91 Business Returns

Partnership K1

:Review and Highlight the following areas‏

Review Line G for Type of Partner‏

Review Line J for % of Ownership‏

Review Line #1 for Ordinary Income‏

Review Lines #2 and 3 for Rental Income‏

Review Line #4 for Guaranteed payments to Partner‏

Review Capital Account or Box 19 for Distributions‏

Form 91 Business Returns 20

Form 91 Business Returns

1065 Partnership

Line 22 Ordinary Income

$_________

K1

%

Line 1 Ordinary Income

$_________

Schedule E page 2

Part II

Net Income $_______

1040

Line 17 Net Income Sch.E

*$_________

*Taxed at a personal rate

L

21

Schedule E page 2

Form 91 Business Returns

Page 12

22

1065 Partnership K-1

Let’s try to complete the Form‏

91 Section 9

Page 29

23 Form 91 Business Returns

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-) * -66 (+/-)_______

Net Rental RE Income or Loss (+/-)_____ (+/-)_______

Guaranteed Payments to Partner (+)______ (+/-)_______

9. Partnership Schedule K-1- (Form 1065)

Line 9

2010 2011

•2010 K1 shows Line 1 -$66 with no distribution

•2011 K1 shows Line 1 $21,346 with $9,000 distribution

*

24

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-) * -66 (+/-) *9,000

Net Rental RE Income or Loss (+/-)_____ (+/-)_______

Guaranteed Payments to Partner (+)______ (+/-)_______

9. Partnership Schedule K-1- (Form 1065)

Line 9

2010 2011

•2010 K1 shows Line 1 -$66 with no distribution

•2011 K1 shows Line 1 $21,346 with $9,000 distribution

*

25

1065 Partnership K-1

Rental Income from lines 2 and 3‏

Page 29

26 Form 91 Business Returns

Rental Income from a business

Form 8825 Partnership or S Corp Rental Income‏

– Should be attached to the K-1 for either the partnership or S Corp

– Income bypasses the form 1065 or 1120S and flows right to the K-1 and onto the personal tax returns

– Similar to Schedule E rental income from the personal tax returns

– Income may be used if verified recurring (property still owned and has not been sold by the business)

– Use as additional income for the business ONLY if needed

– Income is taken from line 2, subtract line 16 (total expenses) and add back depreciation (line 14) for each property (2010 form)

– Always check investor guidelines if a two year history is required and if the full PI is required to be verified and included in your rental calculation

The business is a real estate business if your business return is blank with no

income but there is a K-1 provided with income listed on lines 2 and/or 3 of the

Form K-1.

Form 91 Business Returns 27

Rental Income from a business

Form 91 Business Returns 28

No Example in your Case Study

Form 91 Business Returns

1065 Partnership K-1

Page 29

29

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-) * -66 (+/-) *9,000

Net Rental RE Income or Loss (+/-)____0 (+/-)_____0

Guaranteed Payments to Partner (+)_____0 (+/-)____ _0

9. Partnership Schedule K-1- (Form 1065)

Line 9

2010 2011

•2010 K1 shows Line 1 -$66 with no distribution

•2011 K1 shows Line 1 $21,346 with $9,000 distribution

*

30

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-) * -66 (+/-) *9,000

Net Rental RE Income or Loss (+/-)____0 (+/-)_____0

Guaranteed Payments to Partner (+)_____0 (+/-)____ _0

9. Partnership Schedule K-1- (Form 1065)

2010 2011

31

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-) * -66 (+/-) *9,000

Net Rental RE Income or Loss (+/-)____0 (+/-)_____0

Guaranteed Payments to Partner (+)_____0 (+/-)____ _0

UPE Expenses (-)$12,676 (-)___ __0

9. Partnership Schedule K-1- (Form 1065)

2010 2011

32

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-) * -66 (+/-) *9,000

Net Rental RE Income or Loss (+/-)____0 (+/-)_____0

Guaranteed Payments to Partner (+)_____0 (+/-)____ _0

UPE Expenses (-)$12,676 (-)$15,222

9. Partnership Schedule K-1- (Form 1065)

2010 2011

33

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-) * -66 (+/-) *9,000

Net Rental RE Income or Loss (+/-)____0 (+/-)_____0

Guaranteed Payments to Partner (+)_____0 (+/-)____ _0

UPE Expenses (-)$12,676 (-)$15,222

9. Partnership Schedule K-1- (Form 1065)

2010 2011

$-6,222 $-12,742

34

Form 91 Business Returns

1065 Partnership

Line 22 Ordinary Income

$_________

K1

%

Line 1 Ordinary Income

$_________

Schedule E page 2

Part II

Net Income $_______

1040

Line 17 Net Income Sch.E

*$_________

*Taxed at a personal rate

L

35

Solvency

Quick Ratio‏

Also called the acid test ratio‏

Excludes inventory; includes only the most liquid assets‏

Indicates how quickly a Co. can pay its current obligations without‏

relying on future sales or its ability to meet its near term obligations

.Rule of thumb: $1.00 to $1.00; then the Co. is considered liquid‏

Important: What is the industry standard?

As the ratio gets smaller, paying bills becomes more difficult and a‏

cash withdrawal could be devastating

*Cash + Accounts Receivable + Other Current Assets =

Current Assets

Total Current Liabilities

*Cash includes all current assets

36 SAM

Form

Business

Tax

Returns

April 2013

Form 91 Business Returns

Solvency

(Cash + Accounts Receivable) + Current Assets -

Total Current Liabilities

{ {

Are there assets to support a withdrawal and/or a larger withdrawal?

Every Business

Return will include a

2 Year Balance

Sheet as Schedule L

37

Form 91 Business Returns

Solvency/Liquidity

Page 34

38

Form 91 Business Returns

Solvency- 1065 Current Ratio‏

– Current Assets (Cash #1 + Acct Recv. #2 + Cur. Assets #6

– Current Liabilities (Acct Pay. #15 + MNB #16 + Other Cur.Liab #17

Current Assets #32,649 + 12,276 + 0= $44,925

Current Liabilities $77,597 + 0 + 0= $77,597

Page 34

$-32,672

39

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+)__ _ __

Depletion (+)__ _ _ _

Amortization or Casualty Loss (+)__ _ __

Mort, Notes, Bonds Payable <1 year (-)___ __

Other Nonrecurring Income or Loss (+/-)____ _

Meals and Entertainment Exclusion (-)__ _

Sub-Total =___ __

Multiply Total by % of Ownership (on K-1) (x)_____

Partnership Total =____ _

11. Partnership Income from Form 1065

Lines 11, 12 and 13

40

Form 91 Business Returns

1065 Partnership

Page 30

41

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+) 0

Depletion (+)__ _ _ _

Amortization or Casualty Loss (+)__ _ __

Mort, Notes, Bonds Payable <1 year (-)___ __

Other Nonrecurring Income or Loss (+/-)____ _

Meals and Entertainment Exclusion (-)__ _

Sub-Total =___ __

Multiply Total by % of Ownership (on K-1) (x)_____

Partnership Total =____ _

11. Partnership Income from Form 1065

Lines 11, 12 and 13

42

Form 91 Business Returns

1065 Partnership

Page 30

43

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+) 0

Depletion (+) 0

Amortization or Casualty Loss (+)__ _ __

Mort, Notes, Bonds Payable <1 year (-)___ __

Other Nonrecurring Income or Loss (+/-)____ _

Meals and Entertainment Exclusion (-)__ _

Sub-Total =___ __

Multiply Total by % of Ownership (on K-1) (x)_____

Partnership Total =____ _

11. Partnership Income from Form 1065

Lines 11, 12 and 13

44

Form 91 Business Returns

1065 Partnership

Page 30

The statement must be reviewed to determine if “other deductions include amortization and/or casualty

losses. None have been identified in this return.

45

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+) 0

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-)_______

Other Nonrecurring Income or Loss (+/-)______

Meals and Entertainment Exclusion (-)________

Sub-Total =_________

Multiply Total by % of Ownership (on K-1) (x)_______

Partnership Total =_________

11. Partnership Income from Form 1065

Lines 11, 12 and 13

46

Form 91 Business Returns

1065 Partnership Balance Sheet

Page 34

47

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+) 0

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-)_____0

Other Nonrecurring Income or Loss (+/-)_____

Meals and Entertainment Exclusion (-)_______

Sub-Total =________

Multiply Total by % of Ownership (on K-1) (x)______

Partnership Total =________

11. Partnership Income from Form 1065

Lines 11, 12 and 13

48

Form 91 Business Returns

1065 Partnership

Page 30

49

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+) 0

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-)______0

Other Nonrecurring Income or Loss (+/-)____0

Meals and Entertainment Exclusion (-)________

Sub-Total =_________

Multiply Total by % of Ownership (on K-1) (x)_______

Partnership Total =_________

11. Partnership Income from Form 1065

Lines 11, 12 and 13

50

Form 91 Business Returns

1065 Partnership

Page 34

51

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+) 0

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-)______0

Other Nonrecurring Income or Loss (+/-)____0

Meals and Entertainment Exclusion (-)______0

Sub-Total =_________

Multiply Total by % of Ownership (on K-1) (x)_______

Partnership Total =_________

11. Partnership Income from Form 1065

Lines 11, 12 and 13

52

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+) 0

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-)______0

Other Nonrecurring Income or Loss (+/-)____0

Meals and Entertainment Exclusion (-)______0

Sub-Total =_______0

Multiply Total by % of Ownership (on K-1) (x)58.3

Partnership Total = 0

11. Partnership Income from Form 1065

Lines 11, 12 and 13

53

Business Classifications

S Corporation

Can be owned by one person‏

Often owners pay themselves a salary draw‏

Business Income Reported on Form 1120S‏

Personal Income on Form 1040’s (Schedule E, could also be W-2 wage or 1099‏

income)

All shareholders of an S Corp are issued K-1’s and are attached to the S Corp tax‏

return or form 1120s.

Advantages

– Taxed on Personal Basis (S Corp. Pays No Tax on Income)

– Liability Limited to Amount Invested

Disadvantages

– Limit of 100 Shareholders

Form 91 Business Returns 54

Form 1120S / S-Corp Return

.Four pages long‏

:First page follows the typical tax form pattern‏

– Income listed, deductions taken, taxable income/loss derived.

.Second, third, and fourth pages are Schedules‏

– Every S-Corp completes the schedules, so they are part of the form.

.Very similar to Partnership return‏

55 Form 91 Business Returns

www.freddiemac.com

56 Form 91 Business Returns

Form 91 Business Returns

1120S Corporation

Line 21 Ordinary Income

$_________

K1

%

Line 1 Ordinary Income

$_________

Schedule E page 2

Part II

Net Income $_______

1040

Line 17 Net Income Sch.E

*$_________

*Taxed at a personal rate

H

57

Form 1120S / S-Corp Return

Income types listed.

Total on line 6.

Deductions taken away.

Taxable or net profit/loss.

58 Form 91 Business Returns

Form 91 Business Returns

1120S

Page 36

59

Form 91 Business Returns

K-1 /Form 1120S

Shareholder’s % of Ownership

Section H

Ordinary Income/Loss

Line 1

60

Form 91 Business Returns

1120S K1

Page 35

61

Form 91 Business Returns

1120S K1

Page 35

• Did Mary receive a distribution?

62

1120S Page 3

Form 91 Business Returns

Page 38

63

1120S Page 4

Form 91 Business Returns

Page 39

64

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-)*83,012 (+/-)338,882

Net Rental RE Income or Loss (+/-)_____ (+/-)_______

10. Partnership Schedule K-1- (Form 1120S)

Line 9

2010 2011

•2010 K1 shows Line 1 $99,882 with a distribution of $83,012

•2011 K1 shows Line 1 $502,619 with a $338,882 distribution

*

65

Form 91 Business Returns

1120S K1

Page 35

66

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-)*83,012 (+/-)338,882

Net Rental RE Income or Loss (+/-)0 (+/-) 0

10. Partnership Schedule K-1- (Form 1120S)

Line 9

2010 2011

•2010 K1 shows Line 1 $99,882 with a distribution of $83,012

•2011 K1 shows Line 1 $502,619 with a $338,882 distribution

*

67

Form 91 Business Returns

Solvency- 1120S Current Ratio‏

– Current Assets (Cash #1 + Acct Recv. #2 + Cur. Assets #6

– Current Liabilities (Acct Pay. #16 + MNB #17 + Other Cur.Liab #18

Did Zen have any additional liquid assets to distribute the to the

Shareholders?

Current Assets $332,273 + $0 + $90,687= $442,960

Current Liabilities $0 + $230,000 + $2,324= $232,324

Yes $210,636 Page 39

68

Form 91 Business Returns

Income Analysis Form 91

Ordinary Income or Loss (+/-)*83,012 (+/-)338,882

Net Rental RE Income or Loss (+/-)0 (+/-) 0

10. Partnership Schedule K-1- (Form 1120S)

Line 9

2010 2011

•2010 K1 shows Line 1 $99,882 with a distribution of $83,012

•2011 K1 shows Line 1 $502,619 with a $338,882 distribution

*

69

Form 91 Business Returns

Income Analysis Form 91- Partnerships, S Corps

and Corporations

70

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+)_____

Depletion (+)_____

Amortization or Casualty Loss (+)_____

Mort, Notes, Bonds Payable <1 year (-)___ __

Other Nonrecurring Income or Loss (+/-)____

Meals and Entertainment Exclusion (-)______

Sub-Total =_______

Multiply Total by % of Ownership (on K-1) (x)_____

S-Corporation Total =_________

12. S-Corporation Income from Form 1120s

Lines 11, 12 and 13

71

Form 91 Business Returns

1120S

Page 36

72

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+)16,638

Depletion (+)_____

Amortization or Casualty Loss (+)_____

Mort, Notes, Bonds Payable <1 year (-)___ __

Other Nonrecurring Income or Loss (+/-)____

Meals and Entertainment Exclusion (-)_______

Sub-Total =________

Multiply Total by % of Ownership (on K-1)(x)______

S-Corporation Total =________

12. S-Corporation Income from Form 1120s

Lines 11, 12 and 13

73

Form 91 Business Returns

1120S

Page 36

74

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+)16,638

Depletion (+)____ 0

Amortization or Casualty Loss (+)_____

Mort, Notes, Bonds Payable <1 year (-)___ __

Other Nonrecurring Income or Loss (+/-)____

Meals and Entertainment Exclusion (-)______

Sub-Total =_______

Multiply Total by % of Ownership (on K-1)(x)_____

S-Corporation Total =_______

12. S-Corporation Income from Form 1120s

Lines 11, 12 and 13

75

Form 91 Business Returns

1120S

Page 36

The statement must be reviewed to determine if “other deductions include amortization and/or casualty

losses. None have been identified in this return.

76

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+)16,638

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-)___ __

Other Nonrecurring Income or Loss (+/-)____

Meals and Entertainment Exclusion (-)______

Sub-Total =_______

Multiply Total by % of Ownership (on K-1)(x)_____

S-Corporation Total =_______

12. S-Corporation Income from Form 1120s

Lines 11, 12 and 13

77

1120S Page 4

Form 91 Business Returns

Page 39

78

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+)16,638

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-) 230,000

Other Nonrecurring Income or Loss (+/-)____

Meals and Entertainment Exclusion (-)______

Sub-Total =_______

Multiply Total by % of Ownership (on K-1)(x)_____

S-Corporation Total =_______

12. S-Corporation Income from Form 1120s

Lines 11, 12 and 13

79

Form 91 Business Returns

1120S

Page 36

80

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+)16,638

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-) 230,000

Other Nonrecurring Income or Loss (+/-) ____0

Meals and Entertainment Exclusion (-)_______

Sub-Total =________

Multiply Total by % of Ownership (on K-1) (x)_____

S-Corporation Total =________

12. S-Corporation Income from Form 1120s

Lines 11, 12 and 13

81

Form 91 Business Returns

1120S

Page 39

82

Form 91 Business Returns

Income Analysis Form 91

Depreciation (+)16,638

Depletion (+) 0

Amortization or Casualty Loss (+) 0

Mort, Notes, Bonds Payable <1 year (-) 230,000

Other Nonrecurring Income or Loss (+/-) 0

Meals and Entertainment Exclusion (-)10,117

Sub-Total =

Multiply Total by % of Ownership (on K-1) (x)

S-Corporation Total =

12. S-Corporation Income from Form 1120s

Lines 11, 12 and 13

-$223,479

67%

-$149,730

83

Business Classifications

Corporation

No Limit on Number of Stockholders‏

Business Income Reported on Form 1120‏

Personal Income Reported on Form 1040 (Dividends on Schedule B, or W-2 Wage or‏1099 income)

Taxed at a Corporate Rate‏

Advantages

– Personal Liability Limited to Amount of Investment

– Owners Not Personally Liable for Debts and Losses of the Business

– Easy to Transfer Ownership (Selling Shares of Stocks)

Disadvantages

– Double Taxation

– Most Costly to Form

– If 1120 shows a loss and you are using income the business (such as a W-2 wage or 1099 income), you must account for the business loss regardless of the percent of ownership

– Check your policy as far as the use of Corporate income to qualify

84 Form 91 Business Returns

Genworth Guidelines

Genworth guidelines can be found at‏

http://www.mortgageinsurance.genworth.com

85 Form 91 Business Returns

Genworth Guidelines

Form 91 Business Returns 86

Legal Disclaimer

Genworth Mortgage Insurance is happy to provide you with these training‏

materials. While we strive for accuracy, we also know that any discussion of laws

and their application to particular facts is subject to individual interpretation,

change, and other uncertainties. Our training is not intended as legal advice, and

is not a substitute for advice of counsel. You should always check with your own

legal advisors for interpretations of legal and compliance principles applicable to

your business.

,GENWORTH EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES‏

EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF

MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH

RESPECT TO THESE MATERIALS AND THE RELATED TRAINING. IN NO

EVENT SHALL GENWORTH BE LIABLE FOR ANY DIRECT, INDIRECT,

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WHATSOEVER WITH RESPECT TO THE TRAINING AND THE MATERIALS.

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