[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

[Lindrobe]

I am new to this study group, but I think I am going to focus on SIMS this weekend. I have been avoiding them, but must work on them sometime. I think I have done about 4000 MCQs and read the text.

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]

Do you guys seriously memorizing all these phase-outs???

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

[Lindrobe]

Hi Topsya. I memorize all of the easy ones like the IRA phaseout, the child tax credit phaseout, the rental loss deduction, etc. More complicated ones, I don't bother with. For example, there is a phaseout for excluding Social Security benefits from income that I think is way too complicated to try to remember. I will take my chances by not knowing that one.

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]

ok, so for IRA you memorized phase-outs for all the different tax groups, such as: MFJ, Single, Head of Household, etc?

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

[Lindrobe]

Topsya, I have made a one page note sheet that I review each day and will study the morning of the exam. For IRA Phaseouts, I just have the following on my note sheet:

IRA Phaseout if one spouse participates in another plan: $178,000 to $188,000 for joint filers

(contributions of both spouses deductible)

IRA Phaseout for those participating in another plan: $95,000 to $115,000 for joint filers

$59,000 to $69,000 for single filers

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"

[zxiao]

@Lindrobe I’m confused with your IRA question. I thought the phaseout rate in your example would be 40% instead of 50%. According to the example provided on Becker on R2-5, I would calculate it this way: The AGI is 4,000 over 178,000. So the phaseout percentage I thought would be 4,000/(188,000-178,000)=0.4, and then multiply by the maximum IRA 4,000, which equals amount of IRA phased out of 1,600. And deduct 1,600 from 4,000 to get maximum IRA deduction of 2,400. I have no idea why the answer for amount of IRA phase out would be 800. I mean, why the rate is 2/10?

I Can Do This!!!!!

BEC: 89
AUD: 99
REG: 93
FAR: 8/2/2014

[Lindrobe]

zxiao, isn't the phaseout 40% of the maximum contribution though, so $5500. So you would multiply 40% by the max of $5500 to get $2200. Then deduct $2200 from $5500 to get the deduction of $3300.

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"

[zxiao]

@Lindrobe

5,500 is the maximum of IRA deduction, I know. But they only contribute 4,000 to IRA. So the maximum for them is 4,000 not 5,500. Just my thought. I'm confused with the phase out rate though.

I Can Do This!!!!!

BEC: 89
AUD: 99
REG: 93
FAR: 8/2/2014

[Lindrobe]

zxiao, instead of calculating the phaseout amount in my calculation above, i just directly calculated the allowed deduction. So, since 40% of the deduction is disallowed, 60% of the deduction is allowed. Just a quicker way of doing the calc….

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"

[golfball7773]

I am coming up with 3300 for an answer as well……can some one explain?

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

*expired

[zxiao]

@Lindrobe so we agreed on the phase out rate… It looks like the answer uses 4,000 but not 40% on the phaseout rate. Hope someone could solve this problem. Thanks for responding so quickly and posting the question.

I Can Do This!!!!!

BEC: 89
AUD: 99
REG: 93
FAR: 8/2/2014

[jeff]

I do not recommend spending time memorizing phaseouts.

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

[Lindrobe]

Has anyone else spent any time on the Wiley SIMS? So many of them require you to have a whole tax form memorized. I find it hard to believe that this would be required on the actual exam.

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]

I haven't practiced any WTB sims, but I do recall from an old thread the exam will usually provide you with a template (no memorization required).

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

[MikeHoncho]

I'm gunna put all my marbles in that bag

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

[Author]

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