REG Study Group – Q1 2018 - Page 21

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    Topic
  • December 11, 2017 at 10:58 am #1676693
    jeff
    Keymaster

    Welcome to the Q1 2018 CPA Exam Study Group for REG. 🙂

    Introduce yourselves and let your fellow NINJAs know when you plan to take your exam.

    The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

Viewing 15 replies - 301 through 315 (of 428 total)
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  • January 18, 2018 at 6:03 pm #1694727
    Lentilcounter
    Participant

    @Reema

    My exam experience was very similar to what @Katie posted. I finished the MCQ in about an hour and the Sims in 2 hours and 10 mins. The SIMs match up with the analysis blueprint topics (no surprises). This was my last exam so I hope I passed. Good luck to the rest of you. I'll be checking the forums once in a while as I wait for the score release.

    BEC = 72 (6/08/16)
    FAR = ?
    REG = ?
    AUD = ?

    January 18, 2018 at 8:40 pm #1694811
    sacpa
    Participant

    @Lentilcounter;
    Looks like you did good. Good Luck!

    Any tips for REG?

    FAR - < than 75, 10/2013, 2/2015
    BEC - < than 75, 10/2013
    AUD - < than 75, 8/2015, 1/2016

    ~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
    ~ I survived because the fire inside burned brighter than the fire around me.
    ~ Something will grow from all you are going through. And it will be YOU.
    ~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

    January 18, 2018 at 10:15 pm #1694851
    Anonymous
    Inactive

    Taking the test tomorrow (19Jan), and I need to figure something out — On the 2018 REG sample exam, Testlet 3, question 2, how exactly does one calculate the correct answer for Fred Patel's Stock Basis on Jan 1 Year 2?

    January 18, 2018 at 10:53 pm #1694864
    Reema
    Participant

    @ Lentil- Looks like you passed…

    January 19, 2018 at 2:54 am #1694886
    Light
    Participant

    Good Luck to all..

    January 19, 2018 at 3:58 pm #1695079
    jjjgolf500
    Participant

    Stupid Question……Why are rental losses an adjusted FOR AGI yet losses are limited to to 50% of AGI over certain limits. It seems like a circular reference to me. When computing AGI, you consider rental losses prior to actually getting to AGI.

    January 19, 2018 at 4:54 pm #1695087
    CPA_2018
    Participant

    jjjgolf500 – please clarify your question. If I am understanding correctly, rental losses aren't allowed unless you qualify for the exemption: mom and pop or real estate agent.

    Mom and pop exception – you are allowed to deduct up to $25,000 in losses, which will begin to be phased out once your AGI exceeds $100K. If your AGI is between $100K – $150K, the excess over $100K will be reduced by 50% which will reduce your $25,000 exception. For example, if your AGI is $120K (50% * 20K” Excess”) = $10K, which will reduce your exception of $25K-$10K = $15K which is what you will report as a loss on Schedule E

    There are special rules you would have to meet to qualify for the mom and pop rule.

    January 19, 2018 at 7:01 pm #1695112
    jjjgolf500
    Participant

    CPA_2018 – “For example, if your AGI is $120K (50% * 20K” Excess”) = $10K, which will reduce your exception of $25K-$10K = $15K which is what you will report as a loss on Schedule E”.

    I understand this. But because the exemption/adjustment is FOR or TO AGI, would that reduce the AGI to $115K in you example above? So even though the exemption gets you TO your AGI, you have to calculate the AGI without it beforehand?

    January 19, 2018 at 7:25 pm #1695120
    jjjgolf500
    Participant

    105k* not 115 ($120k AGI – $15k expemtion)

    January 19, 2018 at 7:54 pm #1695132
    CPA_2018
    Participant

    My understanding is rental losses aren't “adjustments for AGI”, they affect your gross income. Your gross income is reduced by these “adjustments for AGI (aka above the line deductions) which will be things like educator expenses, IRA deductions, alimony paid, etc.

    In the Becker homework, when I have seen the rental loss exception they generally give you the AGI. But yes, in the case that you didn't have AGI and they give you the facts you would need to calculate AGI. Just remember the rental loss is a passive loss that is included within the gross income.

    I hope this helps!

    January 19, 2018 at 8:10 pm #1695139
    jjjgolf500
    Participant

    Yes all the questions I have seen, AGI has been given. For some reason I just started thinking about it because the Roger books state its an adjustment FOR AGI. Thanks for you response regarding it affecting gross income! It led me to look at the 1040 form and it makes sense now.

    I love Roger for the most part, but sometimes the way they explain things seems backwards.

    January 20, 2018 at 10:23 am #1695231
    Reema
    Participant

    Hello,

    IN the following question, dint we adjust the liability assumed by the Corp

    Lind and Post organized Ace Corp., which issued voting common stock with a fair market value of $120,000. They each transferred property in exchange for stock as follows:

    Adjusted Fair Market Percentage of
    Property Basis Value Ace Stock Acquired
    Lind Building $40,000 $82,000 60%
    Post Land 5,000 48,000 40%

    The building was subject to a $10,000 mortgage that was assumed by Ace.

    What was Ace’s basis in the building?

    Incorrect A.
    $30,000

    B.
    $40,000

    C.
    $72,000

    D.
    $82,000

    I am really confused with the basis part in Regulation.

    January 20, 2018 at 4:49 pm #1695355
    gguzman
    Participant

    @Reema

    For c-corps basis to the newly formed c-corp is greater of adj basis or liability assumed.

    Lind's basis in the c-corp is adjusted for liability that was assumed by the c-corp. Lind's basis in the c-corp is 30K

    If Lind's liability was greater then the adjusted basis of the building Lind would recognize a gain, and the greater liability would be the basis that the c-corp would use.

    January 21, 2018 at 9:25 am #1695463
    Thot
    Participant

    Hi Everyone. I am retaking REG Feb 26th. I am using Becker and also just purchased Ninja Scout. I study about 2 hours a day. I wish I could do more but I need to sleep.🤷‍♀️

    January 22, 2018 at 10:40 am #1695786
    dj
    Participant

    Hey guys,

    I just purchased Gleim Test bank. FYI You are only allowed to try testlets 3 times for Gleim. Each testlet has like 6 simulations. I spoke to customer rep and he said they do this to avoid memorization.

    I don't agree with this. I mean I paid for the software. I should be able to practice SIMS as many times as I want. It should be on the individual to understand the concepts as opposed to just memorizing the simulations.

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