REG Study Group – Q2 2018 - Page 19

@Amor

I scored Mock1(57%) Mock2(74%)
I have test on wednesday. But I rarely touched Blaw, I just went through it roughly.
How was your real exam? was there many Blaw questions? How about SIMs? how long they were?

I literally just walked out of taking the reg exam.

Multiple choice was probably more than half ethics and Blaw. That caught me off guard for sure. Very few multiple choice questions on calculating basis, gain/loss, etc which becker focuses on heavily in the MC review. Definitely DO NOT glance over ethics and Blaw. Devote some time to that.

The sims were all related to tax as expected. Some stuff on calculating individual taxable income, book to tax reconciliation, deductible estate expenses, income for an individual from a limited partnership interest (this one was TOUGH), research question, and more. Obviously these will vary greatly from person to person.

@Vinti
Your ME test scores are great!

Have you reviewed them both? You should also see and practice Mock Exam #3. Seeing the types of SIMs they put in there will better prepare you in your actual exam day.
My actual exam was no joke. It’s hard to tell if it’s a pass or fail. I could go either way. My MCQs were half BLAW/Ethics and half taxation. My SIMs were pure taxation. I cannot imagine passing REG without studying BLAW/Ethics/Regulation from Chapters R6-R8. It took me more than 3 weeks to finish BLAW so I pushed my test back 3x this testing window. I finished my Becker REG software 100%. How about you?

Good luck to you.

@PLUCK – Thank you for the descriptions I appreciate it. It's frustrating when the SIMs are doable but the # of documents make them seem impossible to complete. I remember for BEC by the time I finished one of the document heavy SIMs, I realized it pertained to 3 different companies instead of 1 (I was bleary-eyed and rushing by the time I got to this one, I think it was one of the last SIMs), so you can imagine how I felt once I saw that.

A review question, either I'm unnecessarily confusing myself further or I am getting conflicting answers regarding DNI (Estates & Trusts):

I understand DNI is the maximum amount the beneficiary reports as income, but is it the amount *required* to be reported by the beneficiary in the event they receive less than the DNI?

Similarly, is DNI the deduction which must be reported as a deduction from the trust/estate even if less was distributed?

Struggling hard with motivation for this section. I had my hand in a cast for 6 weeks and got married a week ago. So I basically didn't study at all the last 2 months. Now I'm trying to get back into it but the material is so dry and Gleim's in particular is just awful so I'm having trouble. It doesn't help that I'm under no pressure to get it done quickly as I have until middle of next year to pass it (since I'm pretty certain I passed AUD). Meh, I just have to dig in I guess.

@ jsdailey – Thank you, although I think it's “Simple Trusts” which are required to distribute all earned income every year, where as “Complex Trusts” can retain earnings, distribute from corpus and can make charitable contributions.

@Tim – Congratulations that's awesome! Enjoy it man you live once. Regarding the test, seeing as you have plenty of time, I would just push it until you're ready. When I started the process last year, my first test (FAR) was at the end of the 3Q window, so I ended up just sitting for the next 2 at the/near to the end of the next 2 windows since I figured score release was the same.

I'm actually using Gleim MCQ bank (and will hit a couple of SIMs) over my review, but if the course itself is too dry, I used “Roger” as my primary course. I know you've had success with Gleim for the others, so it might be a temporary thing. The bus. law and tax rules/procedures stuff sucks. My test is Friday and I'm just going through all Gleim ethics/treasury reg MCQs as a last minute brain buster hoping it floats around until Friday. I did it for the COSO/IT part of BEC and seemed to work for me.

Also, don't get caught up with the crazy tax details and exceptions in Gleim. Going through the MCQs I hit a point where I realized I'm trying to memorize exceptions within exceptions, I really don't see the value but we'll see. I understand your frustrations but keep on truckin'

The adjusted basis of Ted's partnership interest is $30,000. In complete liquidation of his interest, he receives $10,000 in cash, his share of the inventory items having a basis to the partnership of $12,000, and two parcels of land having both fair market values and adjusted bases to the partnership of $12,000 and $4,000. What is Ted's basis in the two parcels of land?

A.
$8,000 and $4,000

B.
$5,000 and $3,000

C.
$6,000 and $2,000

D.
$8,000 and $0

Answer/Explanation
Basis in partnership $30,000
Less: Cash received (10,000)
——–
Remaining basis $20,000
Less: Basis allocated to inventory items (12,000)
——–
Basis left to be allocated to land $ 8,000
$12,000 / $16,000 = 0.75;
0.75 x $8,000 = $6,000 for Parcel 1 (6,000)
——–
Basis in Parcel 2 $ 2,000

Where did the $12,000/$16,000 come from? I understand that he only has $8,000 more to allocate to the basis of the received assets, but I have no clue where that ratio came from. Anyone know?

Childcare Tax Credit – NINJA marked me incorrect re: a question stating both spouses (filing jointly) must work, but I am finding other sources which state that the taxpayer can be “looking for work” and still be eligible for the credit.

Any clarity?