[jeff]

Resources:

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Exam Experience: https://www.another71.com/cpa-exam-forum/topic/reg-exam-experience-official-thread

[SeattleAccountant]

@Mike, don't stress out, let's go thru it together right now step by step:

step 1:

Got: $17.5 + 3.5 boot received = $21K

Gave up: (35-18) + 1 boot paid = $18K

Gain Realized: = 3K

step 2:

Gain to be Recognized is lesser of gain realized 3K or boot received 3.5K = 3K

step 3:

Basis of new: Old adjusted basis (35-18) + 1K boot paid + 3K recognized gain – 3.5K boot received = $17.5K

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Mike1987]

Thanks Seattle. I can follow the calculation. However my problem is with the step 2 portion. As previously mentioned in Wiley if the boot paid is assumption of liability and boot received is property/cash they would not net. When I got that question wrong I netted 3,500 with the 1,000 thus getting a recognized gain of 2,500, which is obviously wrong. I am having a hard time finding anything specific in the text about this.

[wendywhite]

There is a section in R1 of Becker with a detailed example – in my older material it is on page 89 – ancillary material.

In my Wiley 2012 book the information is in mod 36 transactions in property on page 552.

If you are using different versions it might be a page or so over or before but in those general areas.

FAR 11/2012: 80
AUD 2/19/2013: 90
REG 5/14/2013: 76
BEC 11/2013: 85
Ethics: 100
Waiting on the packet....

[Mike1987]

Thanks, I have 2013 Becker and I think they actually removed a lot of the pages my R1 only goes up to the 70s. I found this site. https://www.1031cpas.com/advancedTopics/rulesOfBoot.htm

Boot Offset Rules – Only the net boot received by a taxpayer is taxed. In determining the amount of net boot received by the taxpayer, certain offsets are allowed and others are not, as follows:

Cash boot paid offsets cash boot received (but only at the same closing table).

Cash boot paid at the replacement property closing table does not offset cash boot received at the relinquished property closing table (Reg. §1.1031(k)-1(j)(3) Example 2). This rule probably also applies to inadvertent boot received at the relinquished property closing table because of prorations, etc. (see above).

– Debt incurred on the replacement property offsets debt-reduction boot received on the relinquished property.

– Cash boot paid offsets debt – reduction boot received.

– Debt boot paid never offsets cash boot received (net cash boot received is always taxable).

– Exchange expenses (transaction and closing costs) paid (relinquished property and replacement property closings) offset net cash boot received.

So is it correct to also say that non-like kind property received does not net with cash paid/liability assumed? That is where I am stuck right now. I don't see an example of this situation in my text. I guess I've been just going through the process of doing the questions and offsetting everything without realizing you can't get away with being taxed since it is a non-like kind property.

[nashville79]

Becker folks,

Taking this one on 5/30 – last portion. Left only a few weeks to cover the bulk of this so trying to make the best use of my time. I took a look at the material covered throughout the chapters as it relates to weight on the exam. I roughly (very roughly) matched up the Becker Chapters with the content outline and came up with the following:

R1: 13-19% (Federal Taxation of Individuals)

R3, R4.1, R4.2: 18-24% (Federal Taxation of Entities)

R3.1, R4.2: 12-16% (Federal Taxation of Property Transactions)

R4.3, R7.4: 15-19% (Ethics, Professional, and Legal Responsibilities)

R4.4: 11-15% (Federal Tax Process, Procedures, Accounting, and Planning)

R5, R6, R7, R8: 17-21% (Business Law)

Anyone care to weigh in? If this is not completely off, I know where I'm spending the majority of my energy.

[wendywhite]

checking in – studying like a madwoman.

and off topic – a controller position opened at our corp.office. Position requires a cpa. my controller recommended me & after my reg test tuesday I'm going to brush up my resume & submit it.

FAR 11/2012: 80
AUD 2/19/2013: 90
REG 5/14/2013: 76
BEC 11/2013: 85
Ethics: 100
Waiting on the packet....

[J]

@Mike1987… if you receive cash or other property as boot and assume a liability of the other party (boot given), they do NOT offset. However, if you give cash or other property and the other party assumes your liability (boot received), they would offset.

For example, if I enter into a like-kind exchange with another party and he gives me cash of $5,000 and I assume an outstanding note of $7,000, I would still have to recognize boot received of $5,000. They would not offset.

On the other hand, if I give cash of $10,000 and he assumes an outstanding note of $13,000, I would only have to recognize boot to the extent of $3,000 (13,000 boot received – 10,000 boot given).

Hope that helps…

[Anonymous]

Go Wendy Go! 🙂

I'm studying like a mad woman, too. I finished studying chapters 5-8 and 1, moving on to review 2 now.

The stories of the sims on the exam are freaking me out. Any advice for those would be great.

[jlg2010]

Sorry reposting…

Hi folks just curious if there is location to study reseach questions? I signed up for AICPA site for Aud and FAR, but the IRC is not there…thx

FAR Aug 12 84
Aud Feb 13 99
BEC Apr 13 86
Reg May 13 87 Done!!!

[kip_snoodles]

I am using Becker 2012. It still have the 2011 phase-out limits listed for IRA's. It has 56,000-66,000(single) and 90,000-110,000 (MFJ) listed. Can anyone who has an updated amount confirm that the amounts that will be tested will be the 2012 amounts, 58,000-68,000 and 92,000-112,000? Are small little phase-out amount details like this even something I need to worry about?

Thanks!

[wendywhite]

jlg2010: https://www.law.cornell.edu/uscode/text/26?quicktabs_8=1#quicktabs-8

kip_snoodles: I have used materials & I check more important limits/phaseouts on irs.gov It is also a really great resource for working through some complex areas – they have examples in their online material.

All my material states no need to memorize phase outs per year – the exam is supposed to be moving away – but you should know how to use & apply those phase outs & limits & how they work. I would still recommend knowing the personal and standard deductions for 2012 though and things like that – at least that is my plan.

FAR 11/2012: 80
AUD 2/19/2013: 90
REG 5/14/2013: 76
BEC 11/2013: 85
Ethics: 100
Waiting on the packet....

[Mike1987]

Thanks InterFC1. In that Becker example above the taxpayer received boot in the form of non-like kind property and paid cash. So is it correct to say that does not offset as well?

[jlg2010]

Thx Wendy!

FAR Aug 12 84
Aud Feb 13 99
BEC Apr 13 86
Reg May 13 87 Done!!!

[Anonymous]

A few more days Wendy, lol..

Looking forward to getting this test over with.

[MCLKT]

Interfc1 – I thought you were a female this whole time!!!!! 🙂 Nice avatar, your daughter (?) is a cutie.

jlg – Wiley Test Bank has awesome IRC research sims.

Nashville – Would you like to do that for Yaeger too? 🙂

Wendy – You go girl! (yeah, I said it) Congrats on the referral and good luck!

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[Author]

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