[Jade CPA-to-be]

hello Guys,

i am having REG exam in 2 weeks and am reviewing RI -R4 in Becker book for couple days and feeling terribly since so much information needs to be memorized and i am not absorbing anymore.

oh well, i am making a list of my questions, if anyone could help, i really appreciate it. even partial answers.

1 this is a SIM question

personal furniture purchased for 10k 4 years ago. improvements of 3000 were made. sold for 7500.

answer: loss 5500, report 0 on tax return, personal losses are not deductible.

my thought: it is capital asset, so counted as capital loss and subject to $3000 deduction on tax return.

2. becker book R2-13 topic self-employed insurance said:

premiums paid for self-employed health insurance reduce the base for the calculation of social security/medicare tax paid in connection SE income.

my thoughts: insurance is not deductible on schedule C, why it reduces the SE income?

3. like kind exchange

gain recognized = lesser of gain realized or boot received?

what does ” boot received” mean here? let us say A exchanges a property with B, A gets 10k cash and A’s property liability 5k relieved, also A assumes B’s property liability 3k.

boot received (to determine gain recognized) = 10k +5k OR =10K +5K -3K

in becker software, i found 2 questions calculating “boot received” differently. which one is correct?

4. individual charitable contribution:

as to general property measured by the lesser fo the basis or FMV, is it subjuct to 30% AGI or 50% AGI limt?

i know cash is 50% AGI and long term appreciated property is 30% of AGI.

5. is federal estate tax paid deductible on schedule A OF 1040? subject to 2% limit or not?

6. for organization cost or startup cost, the book said deduct $5000 for costs exceeds $50000, why the example on the book with total costs $23000, still deduct $5000 and amortized the rest?

7. social security benefits, how to dertermine taxable or not? what is the calculation?

sorry being too many questions, but if anyone could help, please do!

Jade

CPA Licensed in California- Class of 2013

[kayakate24601]

1 this is a SIM question

keyword= personal, it's the indication it's not business and therefore not capitol

2 it's not on the schedule C because it's a FOR AGI deduction…so we back it out of that calculation as well

3 Boot = cash if it's a loss its differently recongized than a gain….I always was bad on these….but I know the answer changes and it horrible! tag someone else! (sorry)

4 If memory serves you get to the 30% AGI at high levels…I would just remember the 50% (again tag someone else)

5. no, federal money never deductible federally and you are crossing forms and death and such

6. because that's an option available if you want income smoothing or matching principle…one of those you see in book never in real life IMHO

7. if memory serves from becker review, they will tell you in the question….or it will be all or nothing no middle ground.

Hope this helps!

B ~ 78 (04.02.12)
A ~ 70 (08.31.12) ~ 77 (10.05.12)
R ~ 81 (04.04.12)
F ~ 65 (11.12.12) ~ 73 (02.28.13) ~ 77 (04.01.13)

[momto5]

#6. Organization or start-up costs are deducted as follows: Deduct the first $5000, then amortize the balance over 180 months. If the costs exceed $50,000, you must reduce your $5000 deduction by any amount greater than the $50,000.

FAR - 92 (4/27/12)
AUD - 96 (7/17/12)
BEC - 92 (8/30/12)
REG - 91 (11/12/12)

[Author]

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