My name is Michael Jellison, CPA and I'm the founder and managing member of BankSems, LLC.
I've been training bankers for many years, and I enjoy it.
Here you will find courses, webinars, cash flow tools, articles and more, of interest to the banking community.
Sunday, April 7, 2013 at 12:29PM Michael Jellison Here's a quiz about Global Cash Flow (GCF) that's fun and will reinforce your knowledge about the calculation, and interpretation, of the concept. Enjoy!
It's a MicroSoft PowerPoint based presentation.
Saturday, March 30, 2013 at 12:32PM Michael Jellison It was bound to happen. Corporate tax reform has been hinted at for months and it seems things are starting to heat up. I'm excited about this prospect - as a tax CPA, this is like 'mana from heaven', or some such place.
I've given up waiting for the 'powers that be' to call me and ask my opinion about the reforms, as apparently, I'm not on the short call list. So, I'll try the proactive approach and offer my ideas sans the request. I've been fairly successful with this in the past. Absolutely nothing to lose.
Word has it that most corporations are in favor of corporate tax reform as a general concept. I suspect like most people are for our national debt being reduced, but not if it means their taxes will go up. Seems corporations applaud tax reform, but balk at the details when those same details portend their tax burden will increase. Who would have guessed?
Thursday, January 24, 2013 at 10:24AM Michael Jellison It's cold here today - a minus 14 degrees F with a wind. Lovely. And, my office is cold, too. The bank turns down the heat at closing; comes on again shortly before the bank opens the next morning. It's that 'shortly before' part that's got me grousing now. I'm in early - my intent to research the 'bypass trust' and its estate planning functions in light of the new tax law changes effective 2013. One of my wealthier customers told me he had scheduled a 'chinwag' with his attorney about estate planning issues, saying "I just hate that stuff..." Well, no heat yet; my fingers reluctant to dance on the keyboard. Coffee's hot though; hands grasp the cup.
Don't get me wrong - I'm not intending to give my customer advice relative to the by-pass trust within his estate plan. And, he's not expecting any advice from me. But, then again, my curiosity is peaked. What have I got to lose by simply knowing more?
Saturday, January 12, 2013 at 1:58PM Michael Jellison It's me again. I'm the banker who has conversations with tax returns. Proud of that ability, by the way. And, I suspect I have multiple personalities - maybe not in a purely clinical sense, but, I often feel there is 'more than one of me' inside my head. Possibly scary for others, but interesting for me. I can summon these personalities at will; not burdened by an unexpected arrival. Oh, I'm also a rather successful banker.
For some time now, I've wondered about distributions - the ones my business customers get (or don't get) from their businesses. It's a casual wonderment; doesn't keep me awake at night, but, I just suspect there's more to them than I know. Right now, a distribution is like an acquaintance. I want something more.
Maybe I can have a conversation with a distribution just as I do with tax returns. It's worth a try.
It helps to have something physical in front of me to summon the conversation. What, I ask? Then it occurs to me - I usually see distributions when looking at my customer's Schedule K-1 issued by some pass through entity. I go to the credit file for one of customers and randomly select a K-1. I'm ready.
Thursday, January 3, 2013 at 8:17AM Michael Jellison It's early morning on January 3, 2013 and I've arrived at the bank early. It's my quiet time; catching up on recent developments my favorite activity. As a business banker working with small to medium sized clients, my task this morning is to digest the American Taxpayer Relief Act of 2012. That's the name of the new tax bill.
Now, before I go further, a little explanation. I've talked with some of you before, and you know I have a rather singular ability to converse with tax returns, and the like. We talk to one another. I'm no longer embarrassed to admit this - I'm rather proud actually. Don't know the source of this privilege, and I no longer wonder.
I'm hoping the American Taxpayer Relief Act of 2012 will 'talk' to me as well. That's really why I'm in the office early.
Thursday, December 27, 2012 at 1:57PM Michael Jellison It's December 27th and the pseudo suspense continues to build. Well, not for me really - I long ago questioned the dire predictions of what would happen if we went over the cliff. And, I did this in a rather unconventional way - 'cliff' - a steep rock face, esp. at the edge of the sea. That's a definition I found.
So, it got me thinking. How steep? There must be degrees of steepness - barely steep, somewhat steep, well, you get the point. And, at the far end of this spectrum is the steepness of the abyss and, I suspect that's the one the media wants us to fear.
Sunday, June 17, 2012 at 7:54AM Michael Jellison Recently, a customer gave the me shares valuation report prepared for his closely held company. The company started this annual process years ago just before one of the original shareholders died. The death was expected (aren't they all?), and the estate tax issues suggested a valuation of the shares was wise.
I'm the company's business banker - have been for many years. And, although I've known this report exists, I've never asked to see it. Two of the original shareholder are thinking about leaving the business and tendering their shares back to the corporation's treasury. The customer is bringing me into the loop early in the process and I like that. I'm bringing myself 'up to speed' on some of the issues involved in the anticipated stock redemption.
So, when the customer offered the shares valuation report, I enthusiastically accepted. Truth be told, my enthusiasm was a bit 'put on'. I wanted to let the customer know I was interested, but not know I really hadn't a clue about how to read the report. Ever been there? No fun, that.
Friday, June 15, 2012 at 10:55AM Michael Jellison By Michael Jellison
Location: AnyBank, USA - Young banker's office.
I know this needs some explanation.
Some of you will remember me from my previous conversations with tax returns. I'm a business banker and, by accident, I found out I could hear tax returns talking to me. And, I could talk with them. Don't know how this came to be, but I'm enjoying the privilege.
Last night, my daughter Alex was watching a video with my wife. Seems this 'adventurer sort' is looking for a 'crystal skull' (rather involved, really, but there you have it). Other 'unsavory characters' are looking too.
Friday, March 30, 2012 at 11:55AM Michael Jellison 
I have an old bus affectionately named 'BusBus' (my grand daughter came up with that name when she was three). It's got a lot of miles on it, as do I, and seems to need, and enjoy, a fair measure of 'TLC' which I gladly provide - wax on, wax off. We get along famously.
When I was very young, my brother and I took the city bus home from school each afternoon. Mom would drop us off in the morning and in parting, say, "Take bus 14A, not 14F." At the bus stop, waiting for 14A, vigilant I was. My younger brother, not so much. Same today.
I didn't know it then, but my anxiety about catching the right bus was needlessly self inflicted. The bus driver on the 14A route was an older gentleman and he had taken it upon himself to make sure we got on the right bus. And, I remember liking him.
Monday, February 27, 2012 at 5:00PM Michael Jellison I'm old enough to remember the blackboard at the front of the classroom. Not green, that came much later. Just black. And I recall having to repeatedly write 'I will not ...." until the surface was covered and the nun told me I could stop. This was always done after the other kids had gone home.
The truth can now come out- Sister Mary 'Whatshername' is long gone, and I risk offending no one - I really liked writing on the blackboard. I liked everything about it - the cool slate surface, the feel of the chalk in my hand, and the sound as I wrote, the chalk dust on my uniform shirt sleeve.
Today, I have an old school blackboard in my office. It's surrounded by a wood frame and has wheels - moveable at one time, but no longer. Got it at a silent auction some years ago. Clients initially ask about it, I respond, and that's the end of it. Some of my long standing clients know the affinity I have for it. They say it goes well with the old fountain pen I favor.
Saturday, January 28, 2012 at 10:35AM Michael Jellison In response to a recent article I wrote about global cash flow, a reader asked, "how can I use the personal tax return to identify possible related entities?"
Good question. Here are my thoughts.
An admission before we get started - I was astounded by how many places within the return related entities were either directly named, or indirectly suggested. I thought I knew - after all, I'm the guy who talks, and listens, to tax returns; the 'tax return whisperer'.
A learning process for me to be sure, and maybe for you as well.
Wednesday, December 21, 2011 at 2:50PM Michael Jellison Recently, I wrote a piece that featured a banker having a conversation with the customer's personal tax return. It was well received; for that I'm grateful.
Here's a conversation with Schedule K-1.
Location: Banker's office, AnyBank, USA
I've just returned from an initial meeting with a new customer and I'm feeling good. I've pursued this customer for some time and late last week he contacted me saying it's time to begin our banking relationship.
Saturday, November 26, 2011 at 7:42AM Michael Jellison In my seminars, I teach bankers how to extract useful information from the customer's personal and business tax returns. It occurred to me that I've never attempted to describe the process to myself, let alone others. That's about to change.
Truth be told, the tax return talks to me - like the narrator of a good story. Sometimes the story takes the form of a mystery, a drama occasionally. But always alive - moving toward something. Not knowing where it will lead keeps me engaged; the twists and turns of the journey of equal import to the destination. And, I've learned that the tax return is soft spoken, never shouts. I've had to train myself to listen with an educated ear.
Sound ' a little odd'? Maybe, but it works for me. And it may work for you.
Monday, October 10, 2011 at 11:58AM Michael Jellison Have you noticed the increased prattle about tax reform? It's been hard to miss. Must be political season again. Be that as it may, it got me thinking about tax reform.
To me, reform implies tinkering with something already in place to make it function better. I'm not sure reform is the right concept when directed to our current income tax systems (personal and corporate). Seems too timid. Scrap the current system and start anew appeals to me.
So, let's assume the powers that be have asked me to design this new tax system. Granted, this is not likely anytime soon, but let's pretend. Here are my thoughts.
Tuesday, September 13, 2011 at 2:30PM Michael Jellison Lowering the federal corporate tax rate - I suspect a tough sell. But, it could happen within the guise of job creation. I'm not going to comment on the wisdom (or, lack thereof) of such a move. Beyond me to be sure. However, it started me thinking about how some of my clients might react.
Sunday, April 24, 2011 at 11:50AM Michael Jellison It's a tax maneuver available to partnerships (including any entity taxed as a partnership). Corporations cannot use it.
It's based on the truism that when you buy an interest in a partnership, you really are buying portion of the assets, liabilities and equity of the partnership.
When you buy into a corporation, you are merely buying an interest in the assets, liabilities and equity. Your shares represent that interest; but you don't own the assets, liabilities, and equity. Subtle, but true.
Saturday, March 12, 2011 at 3:25PM Michael Jellison A client asked me this question last week. Seems he wants to establish a legal vehicle to provide for the education of his grandchildren and he's heard about the irrevocable trust. I told him straight away I thought the question best put to his attorney, but I wanted to find out for myself. Here's what I uncovered.
The short answer is yes, but it's generally perceived as unwise.
Wednesday, March 9, 2011 at 9:50AM Michael Jellison Let's talk about Schedule E, Page 2.
First, the name of the 'pass through' entity is listed, along with the legal format (i.e. partnership, S corporation, etc.). Partnerships and S corporations are identified using 'P', 'S' respectively. Multiple member limited liability companies almost always choose to be taxed as partnerships, so they will use the 'P' designation.
Tuesday, March 8, 2011 at 12:19PM Michael Jellison Many bankers tell me Schedule E can be daunting; difficult to work with. Understood. Let's see if I can simplify it for you.
First, Schedule E has two, very distinct parts.
Sunday, March 6, 2011 at 6:38AM Michael Jellison This is the stuff of estate planning for the well off.
When a person dies, their estate is created subject to the federal (and in most instances State) estate tax. The value of all assets owned by the decedent at death (including assets held in the name of a revocable trust) is determined. This amount is called the 'gross estate'. It's the starting point used for calculating the estate tax.
Consider life insurance proceeds - is the amount included in the gross estate? Maybe.