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Some Banks Still Not Understanding Tax Returns

Posted on April 10th, 2020

Jack Kern
Owner/Pres.
Outsourced Accounting Department, Inc.

Marianne has been reading articles and comments by other CPA firms about what’s going on right now with these emergency SBA loan applications. One person said that the banker told their client “they should not have taken the 179 deduction because it reduced their income,” and there were other similar comments. This reminded me of several articles I wrote on this subject a while back about the difference between “book” and “tax” accounting, and the difference between “profit” and “taxable income:”

The Difference Between Your CPA and a Controller: M1

The Difference Between Your CPA and a Controller – Part 2

Profit vs. Taxable Income

The Risks of Misinterpreting Your Financial Statements