[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

[Anonymous]

So, to clarify…we are taxed on the $2M and the rate is 28%, yes?

[SeattleAccountant]

@Anna, i'm going to use 28%.

@Mike, hear you buddy, I'm ESL as well and often have to go word by word while working on the problem or quickly sketch decision chart, talk about being slowed down 🙁

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

[Anonymous]

Thank you! I had no idea how to apply the small business exclusion info I'd read over in my notes probably 10 times. You guys are wonderful!

I've gotten my notes paired down. Hopefully a few more times through those and some more sims will do it for me. Time is running out.

2 more days to study…

[MCLKT]

Thanks for continuing this small business stock discussion!

[Seattle – I edited your first response, to minimize confusion 🙂 ] Thanks again! You guys are all great.

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

[SeattleAccountant]

@MCKLT, awesome, thanks!

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

[Anonymous]

G'mornin!

I'm wondering if you guys can explain section 291 to me (requires 20% of 1250 property depreciation to be classified as ordinary gain)? Don't we need to recapture all depreciation as ordinary gain? Or, is that just true for 1245 property?

Thanks for your help.

[MCLKT]

Good question! I remember getting a SIM wrong on this topic.

Wiley SIM 0033 requires us to fill out form 4797.

One of the items is a Warehouse for business use that was sold for $132K.

The cost was $160k straightline depreciation $58,600.

Gain of $30,500

I thought we had to recapture 20% depreciation ($11,720) because it was 1250 property?

But the answer states, “the warehouse is Sec 1250 property, the gain is computed in part III. Since only the straight-line depreciation was deducted there is no depreciation to recapture.”

The instructions for part III say “if straight line depreciation was used enter 0, except for a corporation subject to section 291”

So… I guess the question is what makes 1250 property subject to section 291?

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

[MCLKT]

Ok, I just re-read the problem and my post.

In the sim, the warehouse belonged to “Tower Trucking” owned by Tim Tower. I think it's safe to assume it's not a corporation. Probably a sole proprietorship or something.

If the sim were for a C Corp “Tower Corporation” then it would have been subject to the sections 291 20% recapture….

I think…

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

[kip_snoodles]

Thanks everyone for the discussion on the Small Business Stock. That was very helpful.

Quick Questions: Is there a Prometric fee for moving your test day forward? My test is on May 31st, but I am considering moving it a couple of days sooner. I know if you move it back it costs $35.00, but haven't heard of the opposite scenario.

Thanks!

[MACPAWannabe]

Tomorrow marks one week to go before my exam on Tuesday, May 28. REG is the last part I left to pass, and this is my last chance to pass the exam once and for all, otherwise I lose FAR. I've officially decided after 3 years of trying and putting my life on hold, if I don't pass it this time then I'm done for good. This Memorial Day weekend I plan to give it my all, everything I have left, and if I don't pass on Tuesday then it just wasn't meant to be.

Thank you Another71 Family for all the support during this crazy time. Any last minute words of wisdom, tips, or motivational quotes this week would be much appreciated 🙂

Good luck to everyone!

[Stay_Positive]

This is an error in the Wiley book right?

During 2010 Kay received interest income as follows:

On US Treasury certificates – $4,000

On refund of 2008 federal income tax – $500

The total amount of interest subjust to tax in Kay's 2010 tax return is:

a. $4,500

b. $4,000

c. $500

d. $0

The answer key says a. and that US Treasury certificates and federal income tax refunds are subject to tax, but my understanding is that federal tax refunds are not subject to tax.

Is this just an error? Maybe they meant to write “state refunds”?

BEC - 69, 66, 78 (exp), 82
FAR - 69, 72, 66, 76
REG - 64, 66, 72, 80
AUD - 77
Ethics - 95
Waiting on License to be issued!!!

[Anonymous]

MACPAWannabe…I have the urge to shake you and say no, no, no, no, no! You're so close! Hang in there, keep going, you got this, etc. But, I guess if you want to stop then I should just keep my mouth shut. I dunno…it's really just not in my nature to sit here quiet. So, OMG KEEP GOING!

Ok, shutting up now…

[jeff]

The refund isn't taxable, but the interest is.

You mis-read 🙂

[kip_snoodles]

@ stay positive: They are trying to trick you on the wording. The first sentence says Kay received the following INTEREST income. This amount is different than her normal tax refund amount. The interest received for a late refund is taxable income, but the refund itself is not taxable income. I hope my explanation helps!

[Mike1987]

I moved my test up to this Saturday and actually felt relieved. I'm taking that as a sign that I made the right move. Just gonna go over all the tax material again. Hopefully I will be okay as I just finished all the business law HW in Becker the past few days. And Kip, I was charged a fee of $35 to move up my exam a week.

[Author]

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