[jeff]

REG Study Group Links and Resources:

1. NINJA Monthly – $67 REG Course
2. Free REG Notes
3. REG Course Comparison
4. How to Pass REG (with NINJA)
5. How to Pass REG (in 20 Days)
6. How to Pass REG (after Failing)

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• FAR Study Group
• AUD Study Group
• REG Study Group
• BEC Study Group

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[allysewhitney]

Hi there….another AICPA Practice Exam question. The sample instructs you to select the last sentence. Is anyone able to explain to me how you get the $63,763? and the difference between IRC 1033 and 1041?

The tax basis of the land located on Wayside Street is recorded on the tax depreciation schedule at $72,563. We have reviewed the eminent domain letter from the Township of Greensburg's purchase of the Parkway Avenue property and the Combined Closing Statement for the purchase of the new property on Wayside Street. “In accordance with IRC section 1033, the new property should be recorded at $63,763 for tax purposes.”

Thanks

[chandler]

Hi, this one is involuntary conversion. So the first step is to figure out the amount of the gain on the property taken through eminent domain. $71,800-63,000= $8,800 deferred gain. Purchase cost of new land $72,563- $8,800 deferred gain= $63,763 basis in new land. 1033 is the section that related to involuntary conversion/deferral of gain.

[allysewhitney]

Thanks @Chandler! You would make a great tutor!!

[J]

Hey guys, I hope y’all are all grinding hard. So yea, I have my NTS for REG. But I haven’t scheduled the exam yet. I was planning to take Reg like on July 1, but my friends are encouraging me to sit on June 10 so I don’t waste a testing window. I’ve done all the Becker videos and MCQs once through and I’ve grinded R1-R4 MCQs hard multiple times. I still have yet to take a Mock. But yea 2 of my friends said they got like 30 and 34 on their reg mocks with Becker and passed the actual. Should I sit for Reg on June 10 and grind on reg till June 19 when scores get released? I’m so overwhelmed with all the amounts, bracket ranges, and statutory amounts to keep straight. Anybody have recommendations on how to study for MCQ calcs and remembering all those #s?

[Tncincy]

@J it's really hard to say when you should take the exam. Only you know if you're really ready. Sounds like you have studied thoroughly, but only you know if you're ready. Flashcards are a good way to keep formula's straight. Most of all breathe and keep studying hard. You'll make the right decision.

I hope study is going well for all. I have had a stomach virus since Saturday. I am feeling much better, didn't get a full power weekend. But no worries, I listened to the audio and went over notes. I am going to put in a little more reading tonight. Since I'm bed bound, I need to make it count.Something is better than nothing.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[J-not-G]

Hello everyone,
I'm planning to sit for REG in July and I'm going to review with Becker v3.3 tomorrow.
I just found out Becker will have an update on REG of v3.4 on June 11th. Will this update affect my review or exam in July? Should I wait for the update first then start my review? Thanks.

[Tncincy]

Ok. Jeff anybody, Why can't I gain any momentum reading the book? I've tried and tried and just don't want to read this book. I need help, another answer. What else can I do to nail down the concepts.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[74phoenix]

@J-Not-G they should have a breakdown of what they will change, but if the change is only a week away – start your review now because a week isn't going to make or break you.

@Tncincy if reading the book isn't working for you, it's probably time to switch tactics – rewriting notes, flashcards, starting MCQ, watching a youtube video on a concept instead, etc.

Graduated 05/2016.
NY CPA Candidate.
Public accounting.
FAR COMING UP 07/07/2016 !! GOD HELP ME.

[Ali]

Hi Everyone – taking REG on Monday and have a qq I was hoping someone could help with for one of the AICPA questions.

Your client, Linda Madhuri, travels locally as a self-employed IT consultant. Lina bought a new vehicle at the beginning of year 1 at a cost of $20,000. Lina did not elect to expense the vehicle under Section 179 or take bonus depreciation. The vehicle is not subject to listed property limitations. The depreciable life of this vehicle is five years, and Lina uses MACRS to calculate the depreciation for income tax purposes. Lina sold the vehicle on December 31, year 2, for $18,000. There were no other vehicle or equipment purchases in year 1. The applicable IRS standard mileage rate for business use was 58.5 cents per mile for both year 1 and year 2.

MACRS for 5 years half-year convention – yr 1 20% and yr 2 – 32%
Mileage: year 1: Personal is 5K, Business is 15K. Mileage year 2: Personal is 8K and Business is 44K
Repairs: yr 1 $3K. yr 2: $2K

Question is – Remaining basis before sale using the actual expense method since purchase in year 2?

The answer is $14,600 but I have no idea how that is being calculated.

Thank you!!

[23]

Check out this link: https://www.another71.com/cpa-exam-forum/topic/aicpa-reg-sample-exam-sims-explanation/

WA candidate

[chandler]

@Ali, I've seen this questions too many times. You have the wrong mileage for year 2. Should be personal 8k business 24k. Both years, the business use % is 75%.
Year 1 Depreciation: 20,000 * 75% * 20% = 3,000
Year 2 Depreciation: 20,000 * 75% * 32%/2 = 2,400
Basis= 20,000-3,000-2,400= $14,600
Half year of depreciation in Y2 since it's year of sale. Hope this helps.

[Ali]

@Chandler – Thank you!! Yes I meant $24K, my bad. This makes sense.. year 1 depreciation is where I was getting mixed up. I believe becker says that only six months of depreciation is allowed in year of acquisition and disposition, regardless of date which it is acquired or expired so I was multiplying the $3K by 50%. So that is not the case? Just the 50% in the year it is disposed of? Sorry, there are so many nuances to everything I am driving myself crazy!

[chandler]

50% of depreciation in year 1 is correct, but that's already figured into the 20% (40%*/2). It makes sense if you think about it since 1st year there is always a half year taken. However, in year 2 we wouldn't want to take a half year unless we happened to have sold it, so we have to do it manually.

[J-not-G]

@74phoenix Thank you for your advice!

[Tiredofstudyingallday]

Need help on Becker Simulation (Chapter 1, Sim 2, Number 2)

Alice Johnson, single.

She materially participates in Downtown Developers which had an ordinary loss of ($300,000)

She also works as an independent contractor where she earned $30,000

Problem: Calculate the the taxable income/(loss)

Ordinary Loss at Downtown Developers ($300,000) + Ordinary business income at independent contractor $30,000 = $270,000

Because she is single, the threshold of excess business losses is $250,000

Thus, $270k – $250k = $20k carryforward.

How did Becker calculate taxable gross loss of $280k for Downtown Developers???

[Author]

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