[sangtvo]

I have a REG exam in 7 days and I am trying to figure out how should I spend most of my time in the next 7 days. I only had a 3 week time frame to study. From now until exam day, I am shooting for at least 8 hours a day.

I’ve been getting 75-95% (100% every now and then) on tax/ethics MCQ’s–sets of 20. I only touched less than 5 sims in tax and I have not touched Business Law.

I am debating whether I should:
– Keep doing MCQ for tax/ethics and do as much SIMS as possible

or

– Do business law MCQ in the next couple days and SIMS then review

or any other option? Let me know, thanks!

[Anonymous]

at least read through B-law information-that should take you a day at the most, those are tested in MCQ and are easy points. I would definitely do more SIMS, and focus on basis, property and entity taxation as well as estate taxation….I took my test back in July…. but that's my feedback.

[sangtvo]

Ahh I see. Okay, I guess I'll do that. I don't want to miss out on easy points!

[Bourne]

Hey guys, I have my exam on Tuesday and just want to get the C corp basis items down pat tonight. Am I understanding this correctly?

If the new shareholder contributes property to the corp. in exchange for stock AND the shareholder/group of shareholder's that transferred the property has => 80% ownership at the time of contribution, no taxable event (unless cash is paid to the s/h) and the basis in the stock is the AB for the shareholder. The corp. also takes a carryover AB (plus cash/boot paid).

Cash is also considered to be “property” for the 80% control test? The only thing not considered property is services?

If the shareholder contributes property to the corp. and the shareholder/group of shareholder's that contributed property do not have >= 80% ownership, the shareholder recognizes a gain equal to the FMV-AB, the corp. obtains a basis in the property at the FMV and the shareholder has a basis in the stock at the FMV.

When there's a liability attached to the property transferred, the shareholder's basis is reduced by the liability. If the liability the corp. assumed is > than the AB of the property, the corp.'s basis becomes the value of the liability assumed.

Please let me know if this is correct?

[sangtvo]

@Bourne That sounds about right. And yes, cash is considered property and services are excluded from the definition of property.

Good luck! I also have BEC on March 9 too!

[Go.For.Broke]

@sangtvo I certainly wouldn't skip the business law section. Most of it is “low hanging fruit;” easy points. Keep doing what you're doing, but work in the business law material. If you haven't read any b-law material in the text, read it if you can. And then work in the MCQs. I wouldn't press on SIMS for BLAW, but certainly MCQs.

[CPA_2018]

@bourne – everything you have indicated sounds right.

Good luck on your exam!

[Bourne]

Thanks guys. Good luck on BEC sangtvo!

[Bourne]

And REG! lol I didn't notice you were the OP

[Author]

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