1088 Tax Form PDF Details

The Form 1088, known as the Fannie Mae Comparative Income Analysis, serves as a crucial tool for lenders to assess the financial health and trajectory of a self-employed borrower's business by examining its performance over several years. This detailed analysis helps in determining the viability of the borrower's business, crucial for making informed lending decisions. By meticulously comparing year-to-year trends in gross income, expenses, and taxable income, the form allows for a comprehensive understanding of the business's financial dynamics. It requires inputs such as gross receipts or sales, returns and allowances, cost of goods sold, and total deductions to accurately calculate the net profit or loss, ordinary income or loss, and taxable income as per various IRS Forms relating to different business structures, including Sole Proprietorships, Partnerships, S Corporations, and Corporations. The form emphasizes the calculation of percentage changes in gross income, expenses, and taxable income, providing a clear picture of the business's growth or decline over the period under review. Tightly regulated printing instructions ensure the form's uniformity and ease of review, aiding lenders in making crucial financing decisions based on a methodical analysis of financial trends.

QuestionAnswer
Form Name1088 Tax Form
Form Length3 pages
Fillable?Yes
Fillable fields1
Avg. time to fill out57 sec
Other namesfannie mae 1088, how to 1088, 1088 form irs, irs 1088 form

Form Preview Example

@) Fannie Mae

Comparative Income Analysis

Borrower Name

Company Name

General Instructions: This Form is to be used to compare the borrower's business over a period of years. Each

term is defined as follows:

Gross Income: Gross receipts or Sales (-) Returns and Allowances

Expenses: Cost of goods sold (+) Total deductions

Taxable Income: from

IRS Form 1040, Schedule C = Net Profit or Loss (Sole Proprietorship)

IRS Form 1065 = Ordinary Income or Loss (Partnership)

IRS Form 1120(S) = Ordinary Income or Loss (S Corporation)

IRS Form 1120 = Taxable Income (Corporation)

Calculation Instructions: Determine year-to-year trends in gross income, expenses, and taxable income as described below.

Gross Income

Step 1. Enter the gross income figure from each year's statement where indicated.

Step 2. Determine the percentage change in gross income from one year to the next by

(a)calculating the dollar difference between the two years, and then

(b)dividing the dollar difference by the previous year's gross income.

Enter the percentage of increase or decrease where indicated. Be sure to indicate a + (plus) or - (minus) sign.

 

Year

 

Year

Year

Income ._______I-=-._______._______I-

Gross

 

100%

100%

100%

 

 

 

% Change

(+) or (-)

(+) or (-)

. ---- 1-

 

% change** I

% change**

 

 

 

 

Expenses

Step 1. Enter the expense income figure from each year's statement where indicated.

Step 2. Determine what percentage expenses are of gross income by dividing the expense amount by the dollar amount of gross income for each year. Enter the results where indicated.

Step 3. Determine the percentage change in expenses from one year to the next by

(a)calculating the dollar difference between the two years, and then

(b)dividing the dollar difference by the previous year's expenses.

Enter the percentage of increase and decrease where indicated. Be sure to indicate a + (plus) or - (minus) sign.

Year ~I

Year

I

Year I I

Expenses.-----,II~%* ~I~ID

%*

I,-----1□%*

% Change

(+) or (-)

(+) or (-)

 

% change** I

% change** I

I

 

*The expenses and taxable income each period as a percentage of gross income for that period. **The percentage change for each item from the previous period.

Page 1

© 2016 Fannie Mae. Trademarks of Fannie Mae.

Form 1088 July 1996

Taxable Income

Step 1. Enter the taxable income figure from each year's statement where indicated.

Step 2. Determine what percentage taxable income is of gross income by dividing the dollar amount of taxable income by the dollar amount of gross income. Enter the results where indicated.

Step 3. Determine the percentage change in taxable income from one year to the next by

(a)calculating the dollar difference between the two years, and then

(b)dividing the dollar difference by the previous year's taxable income.

Enter the percentage of increase or decrease where indicated. Be sure to indicate a + (plus) or - (minus) sign.

Year ~I

Year

I

Year

Taxable

.-----,ID

 

~~I□

 

Income

 

 

 

%*

 

%*

%*

 

 

 

~1-

 

 

 

% Change

(+) or (-)

(+) or (-)

 

 

 

 

 

 

 

 

 

 

% change**

 

 

% change**

 

The Taxable Income Trend is

*The expenses and taxable income each period as a percentage of gross income for that period. **The percentage change for each item from the previous period.

Page 2

© 2016 Fannie Mae. Trademarks of Fannie Mae.

Form 1088 July 1996

Instructions

Comparative Income Analysis

The lender uses this form to compare the performance of a self-employed borrower's business over a period of years to determine its viability.

Copies

Original

Printing Instructions

This form must be printed on letter size paper, using portrait format. When printing this form, you may need to use the "shrink to fit" option in the Adobe Acrobat print dialogue box.

Instructions

The lender should calculate the percentage change for the borrower's gross income, expenses, and taxable income from one period to the next, covering at least a two-year period.

Gross Income equals

Gross receipts (or sales) less Returns and allowances.

Expenses equal

Cost of goods sold plus Total deductions.

Taxable Income

is taken from one of the following IRS Forms:

IRS Form 1040, Schedule C = for the Net Profit or Loss for a Sole Proprietorship IRS Form 1065 = for Ordinary Income or Loss for a Partnership

IRS Form 1120(S) = for Ordinary Income or Loss for an S Corporation (a small, start-up business) IRS Form 1120 = for Taxable Income for a Corporation

Page 3

© 2016 Fannie Mae. Trademarks of Fannie Mae.

Form 1088 July 1996

How to Edit 1088 Tax Form Online for Free

Our leading computer programmers have worked collectively to develop the PDF editor that you're going to operate. The app makes it simple to submit irs form 1088 documents shortly and with ease. This is everything you should do.

Step 1: Look for the button "Get Form Here" on this webpage and click it.

Step 2: Now you are on the file editing page. You may edit, add text, highlight particular words or phrases, place crosses or checks, and put images.

It is essential to provide the following information if you need to create the document:

filling in 1088 stage 1

The software will expect you to complete the Year, Year, Gross Income, I I, or change, Change, or change, Year, Expenses Step Enter the expense, Year, I I I I ID, Year, Expenses, and Year area.

Filling in 1088 part 2

In the I I I I ID, Change, or change, or change, The expenses and taxable income, Fannie Mae Trademarks of Fannie, Form July, and Page part, highlight the vital particulars.

1088 I I I I ID, Change, or   change, or   change, The expenses and taxable income, Fannie Mae Trademarks of Fannie, Form  July, and Page blanks to fill out

You have to identify the rights and responsibilities of all parties in paragraph Year, Year, Year, Taxable Income, ID I, or change, or change, Change, and The Taxable Income Trend is.

Completing 1088 step 4

Finish by reviewing these areas and writing the appropriate details: Instructions, Comparative Income Analysis The, Copies Original, Printing Instructions This form, Instructions The lender should, Gross Income equals Gross receipts, and Expenses equal Cost of goods sold.

part 5 to completing 1088

Step 3: Hit the Done button to save the document. So now it is obtainable for export to your gadget.

Step 4: Have minimally a few copies of your document to keep clear of any kind of potential concerns.

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