[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

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

[TargetCPA]

I thought it would be a p/ship. Noticed the word “taxpayer holds a 30 percent ownership interest in the Sanghvi Corporation”

[Only Reg Left]

Quick question –

If corp distributes asset to sh in nonliquidating distribution with a mortgage…

I know the corp takes the greater of the FMV or the mortgage less the NBV to calculate gain/loss…

but what does the sh record as dividend in the distribution if the mortgage is larger. Is it the FMV or the mortgage?

I'm assuming the mortgage because that's what the corp used in its calculation of the gain.

AUD - 68, 77
REG - 84* (Expired)
FAR - 83
BEC - 74, 74, 72, 72, 84

[Topsya]

the amount of DIVIDEND to a shareholder is the FMV of the property received, reduced by liabilities assumed.

BUT

Shareholder's TAX BASIS for distributed property is the property's FMV (not reduced by liabilities assumed)

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Only Reg Left]

For example:

Corp distributes asset

Liability: 20,000

FMV: 17,000

NBV: 15,000

So corp recognized a gain of 5,000

Dividend to sh: ?

sh basis in asset: 17,000

I don't understand the rule because FMV – liability = negative. I understand most property isn't going to be like this, but I'm just wondering what amount of dividend to report.

AUD - 68, 77
REG - 84* (Expired)
FAR - 83
BEC - 74, 74, 72, 72, 84

[Topsya]

Corporation recognizes a gain $5,000

Dividend to a shareholder $0

Shareholder's basis in the property received $17,000

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Only Reg Left]

Thanks! I'm off to take the test!!

AUD - 68, 77
REG - 84* (Expired)
FAR - 83
BEC - 74, 74, 72, 72, 84

[Topsya]

om my gosh GOOD LUCK!!!!!!!!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[TargetCPA]

Good Luck Only Reg Left!!

[MikeHoncho]

@Only Reg Left

How ya feelin?

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[Anonymous]

I am taking REG 5/23. Can anyone confirm what Medical deduction rate to use? 7.5% for 2012 or 10% for 2013?

Also, Section 179 139,000 for 2012 or 500,000 for 2013?

Gift exclusion? 13,000 for 2012 or 14,000 for 2013?

Any others?

[Anonymous]

10% for Medical AGI Threshold, Sec. 179 = 500K Deductible on first 2M, and Gift exclusion is 14K (28K MFJ).

[MikeHoncho]

^^Agreed. I would like to add if you are 65 or older, you deduct medical expenses in excess of 7.5% of agi (otherwise the 10% rate applies to taxpayers age 64 and younger).

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[Topsya]

well, since we are talking about what has changed,

the uniform fidt and estate exclusion has also increased from $5,ooo,ooo and 35% (2012) to $5,250,000 and 40%

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

*uniform GIFT i meant to say … lol

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[TargetCPA]

In 2013, Gift exclusion (life time exclusion) = $5,250,000 @ 40%

[Author]

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