[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

[wendywhite]

I pulled out my old text books on 1231, 1245, 1250, & 291.

1231 applies to real property and depreciable personal property: used in business & held for more than 12 months.

Personal property gets the 1245 treatment

Real property gets 1250 or 291 (if you are a corp) – of course – that is depending of if they used accelerated dep.

You will need to work through them – to get the understanding solid in your brain but the basic concept behind the calculations is that you will recapture the depreciation previously taken on that asset (up to the amt of the gain on the sale) and classify that as ordinary income (sect 1245). The excess of the gain if any over the depreciation taken will be a capital gain.(sect 1231).

I think you should know clearly:

what is and is not a 1231 asset

property classes and convention (1/2 yr, mid month, mid qtr)

Losses on 1231 are ordinary losses (not 1245 losses or 1250 losses). this is a good thing for the taxpayer.

the total gain remains the same – you are only classifying portions of it as ordinary or capital gain.

review the form 4797 for where to put which property & know that sect 1244 goes on there as well

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

[MCLKT]

@Wendy – sims – I was referring to were from a different thread, sorry!

“child & dependent credit, foreign credit or individual AMT”

Also, above is a great summary of 1231, I spent some time on it this weekend and am glad to say I followed right a long and agree 100% all the way down to what is important to know!

Also, the total 1231 net loss for the year (after depreciation recap) is recaptured against any 1231 gains in the next 5 years.

So, if after you do the depreciation recapture and categorize a portion as ordinary, and you have a 1231 gain/loss of:

year1 $-5k

year2 $-10k

year3 $+8k

– now you recapture the -5k from year1 and -3 from year2

All $8k is ordinary income

This leaves remaining 1231 Loss from Year 2 that is nonrecaptured of $7k

year4 $+15 – you recapture the 7 from Year 2 and class as Ordinary Income

The remaining 8K is 1231 Gain (LTCG)

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

[kip_snoodles]

I am just finishing up Becker tax MC questions/review for the second time, and then I am going to spend a couple of days practicing only Sims. I have read from other posters that the Wiley Sims prepare you better than the Becker Sims prepare you. Do most of you still find this is correct?

Overall, I feel pretty good about the multiple choice questions, but I still feel uneasy just with how much material can be tested and about how I really only feel like I have mastered the materials that are covered in HW questions. I guess I will just have to keep reviewing my note cards for the less covered materials.

Thanks!

[Anonymous]

Did some light reviewing through my Becker book and then nailed a progress test..

I think I'm ready. Just relaxing until my test tomorrow.

[Myeble]

WOW “Wendywhite” and “MCLKT”…you guys are really Nindja…Hiyaaaaa!!!!

Thank you so much for the explanations…I will read it over and over and do more problem…and fill-out form 4797!

Thank you again…

[wendywhite]

I think I ran out of sim questions in wiley.

i was working on sims only testing and asked for questions not seen yet… only 3 of the 10 (excluding research) were new.

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

[wendywhite]

ok

so I'm so nervous and studying like crazy and you are over there with your yawn – glass of wine attitude!!!

send some my way because I am really not feeling 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....

[flyingeagle90]

I took REG this morning. With my first two exams I had an hour left over on each one. With REG I worked down to the bitter end, with about 5 minutes left on the clock. The MCQ's weren't so bad. I definitely noticed an increase in difficulty for testlet 2. Testlet 3 was about the same as #2 so hopefully that's a good sign that I did well on them. I'm going to need every point I can get because the sims were brutal. The research question took forever and I'm still not sure I found the right section. One sim was in one of my strong areas so I felt good about that one. The other 4 were terrible. One was on a topic that was only brushed upon in my study materials and I never once had a MCQ on it in the Wiley test bank. I couldn't believe there was an entire simulation on it. Thankfully I was able to use the research materials for help. I think I may have just squeaked by, but I won't be at all surprised if I failed this one. 🙁

FAR - Aug 2012 - 87
AUD - Nov 2012 - 84
REG - May 2013 - 90
BEC - Oct 2013 - 87

Licensed in NC

[Anonymous]

Thanks for sharing flyingeagle! This story seems to be very familiar.

I'll be honest, I think I could study another six weeks and still not be ready. I mean, if it asks how long to depreciate your race horse, I'm good. On the other hand, you ask me to calculate the accumulated earnings tax of a personal holding company and I'm screwed. I don't know whether to go vomit, curl up in a fetal position, or just to keep beating my head on this notebook. None of the options is appealing. I'm in deep.

[Anonymous]

Hey Wendy, hang in there. You're going to pass. I really feel that you are. Just keep going.

[Myeble]

Every time i took this crazy exam…i felt the same way..Its a lot about “Chance” because if you are tested on a topic that you master…WELL GREAT….but on the other hand if you are tested on a shaky subject that you did not master…then it's like total despair…

I always felt like that too…even 6 or 4 more weeks would not have prepared me better….I just don't get it…but we are in TO WIN…so let's keep our heads up.

I know that at least one simulation won't count! 🙂

FAR -Passed

BEC- Passed

REG- ? 7/2?

[Myeble]

Going from book to taxable income:

Net capital loss on the sale of securities and the Loss on the sale of investments in marketable securities. One answer added to arrive at taxable income and the other subtracted it? I am confused!?

[Myeble]

Going from book to taxable income:

Net capital loss on the sale of securities and the Loss on the sale of investments in marketable securities. One answer added to arrive at taxable income and the other subtracted it? I am confused!?

[Anonymous]

Which problems are they? I'd love to look them up if they are in Becker or Wiley.

Thanks for the pep talk, too. I'm frustrated. I feel like I'm drowning in info.

Also, I said personal holding company…I see personal holding companies aren't assessed accumulated earnings tax but I do believe the Ninja audio said personal service corporations do self assess this. I can't find it in Becker, or online. Can someone confirm whether Personal Service Corporations do or don't self assess accumulated earnings tax?

[wendywhite]

have that open on one of the many pages that are open on my computer.

phc – 15% self assessed on income not distributed.

phcs are not subject to accumulated earnings tax.

psc-taxed at a flat 35% rate.

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

[Author]

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