[jeff]

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

[Anonymous]

I am a little confused on Becker's video lectures for R1 & R2. Tim will regularly say, “Don't focus on the dollar amounts”, when referring to the AGI phase-outs, exemptions, deductions, etc. While listening to the lectures I did just that and ignored the amounts. Then I get to the MCQ portion and a majority of the questions require you to know exactly what Tim said to ignore.

Could someone please clear this up for me? Is it worth it to go back and make some flash cards over the material Becker is telling me to ignore?

Thanks!!

[Holly]

@drumstick I think (?) some things don't change and others are indexed. Like personal exemptions change but the exclusion for mom and pop rental losses don't. Not sure if it clarifies that in the lectures, though.

BEC - 79
REG - 85
AUD - 5/27/16

[Holly]

I'm in R2-4 Becker. In the lecture he says that the IRA contribution for the prior year is due April 15 but can be extended with the tax return extension. Did anyone else get that from the lecture?

BEC - 79
REG - 85
AUD - 5/27/16

[Holly]

How about simulation for R1, Task 2, Q 7
The FICA deduction includes both the employee and employer parts. Not sure if that's right.
Also, the facts say the $25k is salary (which would be included in gross income), but the exclusion explanation says it's a draw. Which is it?

BEC - 79
REG - 85
AUD - 5/27/16

[SheilaTX]

Just took it this morning. Don't think the subject matter was harder than before, just more time consuming with more simulations to do now.

[Anonymous]

@Holly Sexton – Thanks for your help.

My turn! I'm not sure about R1 Task 2 Q7, is this a Ninja MCQ? The question doesn't seem to line up with the Becker questions.

Either way – The owner's income from a business (flowing through Schedule C), regardless of whether they call it a “Draw” or “Salary”, will be a result of the profit or loss reported on Schedule C. What they paid themselves should be excluded from both the “Wages” (line 7 of the 1040) and “Wages” (line 26 of Schedule C). They will be taxed through the Individual 1040 when the Schedule C P&L is added to income on line 12.

[wakefern58]

Could someone help me clarify the deduction/limits for Individual Charity Contributions. Please tell me if I have this right?

Cash – 50% of AGI Limit
Short Term Property (Both appreciated and nonappreciated) = 50% of AGI Limit. Deduct the lesser of: the NBV OR the FMV
Long Term NON Appreciated Property = 50% of AGI Limit. Deduct the lesser of: the NBV OR the FMV
Long term APPRECIATED property = 30% of AGI limit. Deduct it at the lesser of: the FMV OR the remaining amount to reach the 50% of AGI limit after considering any cash contributions

I'm more concerned with what the appropriate treatment is when the property is short term (both appreciated and nonappreciated) and when the property is long term (nonappreciated). I appreciate all the help!

[Holly]

@drumkstick you are so right with the salaries thing. The other thing I asked Becker and they said I was right about what I heard. The lecture on page R2-4 says that the contribution can be extended along with the tax return extension – this is not true!

BEC - 79
REG - 85
AUD - 5/27/16

[Holly]

@drumstick the other thing I was questioning on the same simulation question was FICA. (First how can they have FICA taxes if the only salary was to sole proprietor and it's a draw-not really asking, just rolling my eyes and annoyed) They are deducting the whole $2,600 and half should've been taken from the employees portion and not an expense for the sch c.

BEC - 79
REG - 85
AUD - 5/27/16

[Parisa]

Hi– I have a question on AMT

The question is from the Skills Practice in Becker.

I understand up until the point of calculating the AMT taxable amount less exemption allowed which is $195,900. BUT I don't understand the next step of calculating the Tentative minimum taxable amount. How do you how much to breakout and what percentages to use.

This is the answer… just don't know to determine the breakout and percentages. PLEASE HELP 🙂

187,800 * 26% = 48,828
8,100 * 28% = 2,268

Total = 51,096 Tent Min Taxable Income

FAR - 1/25/2016 - 78
BEC - 2/27/2016 - 68
AUD - TBD
REG - TBD

[jeff]

Closing thread – see everyone in the new study group.

[Author]

Replies