[jeff]

Welcome to the Q2 2017 CPA Exam Study Group for REG. 🙂

[passantsalama]

I need a help please!!
In REG 2017 new software, lot of topics are not there anymore especially in ETHICS and less questions are available.
Should I continue studying with what I have or take a look at the 2016 book and questions

[cpaninja92]

Hi guys, need a little help with this ninja mcq:

Tom Lewis, an individual taxpayer, sold his personal automobile (never used for business purposes) for $5,000 in the current year. He purchased the automobile five years earlier for $10,000. Which of the following is the correct treatment of this transaction on Tom's current-year tax return (assuming that Tom's only other source of income was from wages)?

A. Include $5,000 as miscellaneous income on his tax return.
B. Deduct a $5,000 long-term capital loss on his tax return.
C. Deduct a $3,000 long-term capital loss on his current-year tax return, and carry over the remaining $2,000 to the next year.
D. Show neither income nor loss from this transaction on his tax return.

The right answer is D, but I chose C as my answer. According to my becker book, “personal automobiles of an individual taxpayer” are considered capital assets. As such, when a taxpayer disposes this property, a capital loss is recognized. individuals are also allowed to deduct $3,000 of capital loss against ordinary income and carry the excess forward. Am I understanding something wrong or forgetting a rule? Please help!

Thanks in advance 🙂

[Mohamed Elsafty]

how to calculate kiddie tax ?
i have a sim question regarding this tax and i cant answer it. please if anyone is interesting leave me his/her email so i can send it
thanks

[Tncincy]

@ cpaninja92 There is no taxable transaction. The key to this question is never used in business.
capital gains or losses result from the sale or exchange of capital assets used in business or held for more than one year. Key is never used in business.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[leepokman]

I believe this is because many topics are removed for the new version of the exam.

[TXJAM]

Topic: Trust Interest income

If the grantor of the trust can revoke, is it a completed gift or not?

I have written down that it's not, but on other MCQ's the income is considered a completed gift.

Are there some particulars i'm missing? I understand Income generated in a grantor trust is taxable to the grantor. Bur what is the grantor has a designated beneficiary? My rational is that because the beneficiary can readily enjoy the interest income, it is a completed gift. What part am missing?

[wng1885]

If the grantor can revoke the trust interest income then it is not a completed gift. It is because he retains the right to revoke that it is an incomplete gift. I think that is why.

[free42]

Hi Everyone,

I'm struggling trying to figure out which is the right answers for the following questions below, anyone that can help me figure it out and understand it would be greatly appreciated. I'm conflicted because of everything I have read and of course one or more of the options sounds right to me.

The federal estate tax may be reduced by a credit for state

A. Gift taxes on gifts made two years before death. —-I feel like the answer is A?

B. Income taxes paid in the year of death.

C. Death taxes.

D. Intangible property taxes.
—————————————————————————–

When a shareholder contributes property to obtain stock, what will determine the valuation

of the investment, when the total shares owned by contributors of cash and property is greater

than 80%?

I. The adjusted basis of the property.

II. The fair market value of the property.

A. I only

B. The lesser of I and II. I'm leaning towards this answer?

C. The greater of I and II.

D. II only But thought it might be this as well?
———————————————————————————
Identify the correct statement about Schedules M-1 and M-3:

Reconciles Book Income (Loss) with Distinguishes Between Permanent and Income per Return Temporary Differences

A. Both Schedule M-1 and Schedule M-3 Schedule M-3 Only

B. Schedule M-1 Only Both Schedule M-1 and Schedule M-3

C. Both Schedule M-1 and Schedule M-3 Neither Schedule M-1 nor M-3

D. Both Schedule M-1 and Schedule M-3 Schedule M-1 Only

[afrieband16]

@free42

For the first question I'm not totally sure but I think that you are right A is the right answer (I could be wrong)

For the second question, the answer is A. This is a 351 nontaxable exchange since the contribution of cash or property is greater than 80% (control). Therefore you always use the adjusted basis of the property to determine the value of the investment. You don't use the fair market value, just the adjusted basis.

For the third question – the answer should also be A. Schedule M-1 reconciles book income to taxable income but it does NOT show the permanent and temporary differences in detail. Schedule M-3 is like M-1 on “steroids” – it reconciles book to tax income and shows the differences in detail.

I hope this helps!

[wng1885]

I feel like question one might be answer C, Death Taxes. I believe death taxes are typically a state tax that can be reduced on a federal level estate tax return. I do agree with the answers for question 2 and 3.

[YALA112]

Hi everybody, so my REG test is scheduled for May 20th and I am freaking out!!! I am using Becker’s and went over the lectures, took notes, did all MCQs and Simulations.
I feel defeated and I haven’t even taken the test yet. I took the Becker’s mock exams and got 56 and 60 respectively after averaging 72 on my progress tests of 38 MCQs each.
What I am doing right now is tons and tons of MCQ’s. Same questions over and over and over. I just create testlets of 38 questions each and work thru them.

What are you guys doing? Honestly, I think I am not going to pass. Anyone on the same boat?

Also for you that already took the test? How was your experience? Did you feel confident? Were the questions similar to the ones in Becker’s review? Etc etc

[Anonymous]

Ok, first off you still have 15 days to study! That's more than enough time to tighten it all up…I would recommend buying Ninja MCQ and doing those. Also, for Becker Progress Tests, it tells you which modules you scored low on, go back to those, re-read the book-you will find that if you are scoring low, you are probably missing some concepts. Just keep doing progress tests in Becker and Ninja MCQ for the next 15 days, with attention to the ones you are consistently getting wrong and you should be good! This is review time-you go this!

[mashloum]

Hi YALA112,

For REG no one can feel confident, you just need to focus on your plan only, start by Wiley notes and solve each unit MOC to ensure you are on top of the things and redo till absorb the concept!
Yager flash is good choice as well, in addition to ninja audio

[MeanJoe]

Esam,

Yaeger flash being the flashcards?

[mashloum]

Yes MeanJoe, Yaeger flashcards, better to use the mobile app
Around 660 flashcards and very useful

[Author]

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