[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

[Melans]

@Mike Honcho – THANK YOU!! That is a great explanation and I believe I understand the concept now! Just to remember 1% deduction for every $2,000 till down to 20%. ($45,000 being the max).

AUD 7/30/12 73; 12/2/13 85
BEC 7/19/13 81
REG 8/2/14 83
FAR - Jan 2015

[MikeHoncho]

@Melans

Your welcome! I don't want to overcomplicate this, but I would just like to comment that technically any amount over $43,000 AGI would be the max (not $45,000).

Example:

AGI= $43,001

$43,001 AGI – $15,000 AGI limit = $28,001 of AGI above limit

$28,001 of AGI above limit divided by $2,000= 14.0005 (Since the rule states PORTION THEREOF, this basically means ROUND UP). So its rounded up to 15 and the 35% is reduced by 15 percentage points.

Lol hopefully it doesn't come down to this much accuracy on the exam. But its just a heads up to round up! Im pretty sure there are a couple other credits that use this terminology “portion thereof.”

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

[jeff]

Clarissa's REG Experience:

https://www.another71.com/ninja-cpa-blogger-clarissa-4/

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

[How many letters do you need]

REG is scary

MBA,CMA,CPA, CFF?, ABV?

[Melans]

@Mike – excellent point, kudos on pointing that out. I just did quick math (35-20*2=30+15=45). But you are right really that last change would start at a penny above $43k. Thank you again!!

AUD 7/30/12 73; 12/2/13 85
BEC 7/19/13 81
REG 8/2/14 83
FAR - Jan 2015

[NySinghCPA1985]

Can someone tell me where i can find becker version of CPA released questions for regulation? they were available few months ago and apparently they've disappeared everywhere… I need it for years 2011-2013, 2014 if available..

thanks

FAR 1/30/14 86 beast is slayed
REG 5/30/12 81 expired :/ Retake April or May 2014
AUD 5/24/13 85
BEC 10/07/13 80

[jeff]

I think the links have all been taken down. The AICPA licenses them to the providers.

You'll need to get them from your review provider – or in a software package like NINJA MCQ.

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

[Lindrobe]

Hello all. I am reviewing the Ninja MCQs and have a question about the following:

Rita Spano is an active participant in a company retirement plan. Her husband, John, age 45, works for a company that does not have a retirement plan. The Spanos' joint adjusted gross income for 2013 is $182,000. John contributes $4,000 to an IRA for himself. How much of this $4,000 contribution for John can the Spanos deduct on their 2013 joint return?

A. $4,000

B. $3,200 (correct)

C. $2,000

D. $0

This is the explanation:

Beginning in 1998, individuals are not considered participants in a company retirement plan simply because their spouses are. However, the maximum deductible IRA contribution for a nonparticipant spouse is phased out for couples with joint return adjusted gross incomes between $178,000 and $188,000. In this case, the Spanos' AGI is $4,000 over the beginning of the $10,000 phaseout range so their maximum $4,000 deduction is reduced by $800 ($4,000 × 2 ÷ 10) to arrive at $3,200.

It seems to me like the calculation should be as follows: ($5,500 x 6 ÷ 10) to arrive at $3,300. Also, when you use the IRA deduction worksheet in Publication 590, it would lead you to $3,300. Can someone explain this to me?

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

Hi again. I have another question that doesn't make sense to me:

During 2013, Lee Smith had $100,000 of mortgage debt canceled because he was insolvent. Immediately prior to the debt cancellation, Smith's adjusted basis in his home was $150,000. As a result of the cancellation, Lee Smith will recognize income of:

A. $0.

B. $50,000. correct

C. $100,000.

D. $150,000.

The explanation is as follows: Discharge of debt due to debtor insolvency is generally not included in gross income. Instead, the adjusted basis of assets is reduced by the amount of debt forgiven. In this case, Lee Smith's adjusted basis of his home will become $50,000 ($150,000 – $100,000).

So, wouldn't the answer be $0 since the question is asking for the income that should be recognized (not the new basis in the asset)?

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Topsya]

woah….. do we need to MEMORIZE all these IRA phase-outs????????????????

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

[Anonymous]

Not to interrupt all of the detailed tax questions, but I'm somewhat in need of some guidance. I just passed my first one (AUD) using Becker and NINJA notes and audio. I familiarized myself with Becker for a few days, wrote the NINJA notes, and then started doing the MCQ. It seemed to work out really well.

I can't seem to get in a groove with this one. I've gone through all of Becker's videos and have tried a couple of different times copying my notes from Becker and writing the NINJA notes. Each time, after no more than an hour, I quit, convinced I need to work on the questions instead. I'm only through individual tax on the MCQ (R2 of 8) and I'm testing in less than 3 weeks. I have no problem putting in the work, and I'm determined to pass, just looking for a little advice.

Many thanks

[MikeHoncho]

@ Lindrobe

I agree with you on your second question. New basis equals $50,000 and $0 recognized in income.

As for the first question, thanks for posting! I was unaware there was also an AGI limit. I can't seem to find the formula in Publication 590 so I'm not exactly sure.

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

[Lindrobe]

Thanks, MikeHoncho! For the first question, I think you would use the worksheet on page 19 of 114 in Publication 590 (https://www.irs.gov/pub/irs-pdf/p590.pdf) . The calculation above just doesn't seem right to me, so that is why I went in search of some additional guidance in the publication.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[MikeHoncho]

Ok thanks I'll take a look

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

[golfball7773]

What is everyone's plan this weekend? I take my test next Saturday May 17th. I plan to rewrite the Ninja notes and sneak in some MCQs.

FAR: 63, 55, 62
REG: 65, 77*
AUD: Fail, 64, 71
BEC: 72, 74, 81

*expired

[Author]

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