[mw5582]

I need a little advice. I am taking REG this week and I know for casualty losses for 2009 that the minimum must be $500 instead of the previous $100 floor….both years are still subject to the 10% AGI limitation. My question is this. If I get a simulation that asks for a casualty loss, should I use the $500 or $100? I could see it going either way. Thanks in advance.

[Anonymous]

Use the $500. The change happened last year and should be the testable amount (previous year's tax law for current year's testing).

[mw5582]

Thanks for your help Dale. I appreciate it.

[Anonymous]

mw5582 – Also look at the fact pattern. Many of the questions in REG state the year in the fact pattern. For example, a Becker sample question could be: it might say in July 2006, George bought a building for … its FMV is … On Aug 2007 a fire occurrd causing … damage. The insurance information is provided. In this case you would use the numbers for Year 2007 and not the current year 2009. Good Luck on your exam.

[never2late]

Now i am confused. Lee_IN, are you saying we need to memorize all prior years' numbers or will question be providing it if it was asking for a prior year? So far, i am using 2010 becker book, and only plan to remember 2009 #s. thanks.

FAR 86 (11/21/09), BEC 88 (1/06/10), REG 90 (3/7/10), AUD 93 (5/9/10) I am done!!!

[mw5582]

Oh, ok. Thanks Lee_IN. I didn't even think about that. That is great info.

Never2late- I don't think we need to know very many specific 2009 figures for REG. I have heard the only specifics we need to know are causalty losses and the Section 179 amounts for deprecation. Other than that, it is more conceptual that anything.

[never2late]

thanks, mw5582. I have heard that too, but many becker questions require us to memorize specific figures, so i am not sure.

Also, does anyone know if i should bother remembering GAAP rule applying to Principle vs. Income (REG4 Appendix A). It doesn't make sense to me at all.. thanks.

FAR 86 (11/21/09), BEC 88 (1/06/10), REG 90 (3/7/10), AUD 93 (5/9/10) I am done!!!

[Anonymous]

The only specific numbers you should commit to memory are the Section 179 stuff, the casualty loss amount (easy), and the passive loss allowance for the ‘mom & pop' allowance.

[Author]

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