On July 31, I presented a webinar to Family Law attorneys entitled, Analyzing Tax Return Data (as it related to income available for support). The event was sponsored by the State Bar of California Family Law Section. Webinar content included an analysis and interpretation of business and personal tax returns as it relates to gross cash flow available for support calculations. We discussed what items to look for, and addressed how to convert income to cash flow for support calculations, in addition to how to input the data into support calculation software.
The initial topic I focused on was how to prepare gross cash flow. This included the sources of cash flow—individual income tax returns, C-Corporations, S-Corporations and partnerships.
Next, I addressed support calculation software input reconciliation— cash flow versus taxable income.
Thirdly, I concentrated the discussion on support calculation mechanics, including settings, tactics, input of cash flow information, and analyzing and understanding results.
To enhance the attendees’ grasp of this subject, I presented a detailed case study, which partially focused on proper input of information into IRS tax forms. These included Form 1040, Schedule A, Schedule B, Form 1120 (U.S. Corporation Income Tax Return), Form 1120S (U.S. Income Tax Return for an S Corporation), Schedule K-1 (Shareholder’s Share of Income, Deductions, Credits, etc.), and Form 1065 (U.S. Return of Partnership Income). Subsequently, I presented an example of reconciliation of cash flow to support calculation software input.
I thank each of you who took the time out of your busy schedule to attend the webinar. All of you who were present, as well as those who were unable to attend, are welcome to contact me with questions concerning this subject. It will be my pleasure to assist you.