[jeff]

REG Resources:

Free REG Notes & Audio – https://www.another71.com/cpa-exam-study-plan

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Score Release: https://www.another71.com/cpa-exam-scores-results-release

[Anonymous]

Can someone help me with an explanation why the taxes are not allowed for AMT itemized deductions. I think i am just confusing myself with the adjustments where Taxes are added back.

Robert had current-year adjusted gross income of $100,000 and potential itemized deductions as follows:

Medical expenses (before percentage limitations)

$12,000

State income taxes

4,000

Real estate taxes

3,500

Qualified housing and residence mortgage interest

10,000

Home equity mortgage interest (used to consolidate personal debts)

4,500

Charitable contributions (cash)

5,000

What are Robert's itemized deductions for alternative minimum tax?

a.

$17,000

b.

$21,500

c.

$25,500

d.

$19,500

Explanation

Choice “a” is correct. Robert's itemized deductions for alternative minimum tax purposes are calculated as follows:

Medical expenses (exceeding 10% of AGI)

$2,000

State income taxes (not allowed)

−

Real estate taxes (not allowed)

−

Qualified housing and residence interest

10,000

Home equity mortgage interest (not used to buy,

build, or improve the home-not allowed)

−

Charitable contributions (no difference)

5,000

Alternative Minimum Itemized deductions

$17,000

[Anonymous]

Can someone help me with an explanation why the taxes are not allowed for AMT itemized deductions. I think i am just confusing myself with the adjustments where Taxes are added back.

Robert had current-year adjusted gross income of $100,000 and potential itemized deductions as follows:

Medical expenses (before percentage limitations)

$12,000

State income taxes

4,000

Real estate taxes

3,500

Qualified housing and residence mortgage interest

10,000

Home equity mortgage interest (used to consolidate personal debts)

4,500

Charitable contributions (cash)

5,000

What are Robert's itemized deductions for alternative minimum tax?

a.

$17,000

b.

$21,500

c.

$25,500

d.

$19,500

Explanation

Choice “a” is correct. Robert's itemized deductions for alternative minimum tax purposes are calculated as follows:

Medical expenses (exceeding 10% of AGI)

$2,000

State income taxes (not allowed)

−

Real estate taxes (not allowed)

−

Qualified housing and residence interest

10,000

Home equity mortgage interest (not used to buy,

build, or improve the home-not allowed)

−

Charitable contributions (no difference)

5,000

Alternative Minimum Itemized deductions

$17,000

[HANH4HANH]

Thanks silliepanda and Heidi!

Silliepanda- sure, that be great! where can I find the newly released questions? I'm on your boat and can answer before I even finish reading the question…

FAR 4/13 done
AUD 5/13 waiting
REG 7/13
BEC 8/13

[HANH4HANH]

Thanks silliepanda and Heidi!

Silliepanda- sure, that be great! where can I find the newly released questions? I'm on your boat and can answer before I even finish reading the question…

FAR 4/13 done
AUD 5/13 waiting
REG 7/13
BEC 8/13

[silliepanda]

My mind is close to being done for the day. Feeling nervous but there is not much more I can do except have confidence I know just enough for the 75. @ Han ….. actually if you google 2011 AICPA Released Regulation Questions, 2012, 2013 you should find them no problem.

Good luck everyone!!!!

BEC - TOO MANY FAILS TO LIST! July 2015 I WILL GET IT!
AUD - AUG 2015- NEVER PASSED!
FAR - LOST CREDIT
REG - PASSED

[silliepanda]

My mind is close to being done for the day. Feeling nervous but there is not much more I can do except have confidence I know just enough for the 75. @ Han ….. actually if you google 2011 AICPA Released Regulation Questions, 2012, 2013 you should find them no problem.

Good luck everyone!!!!

BEC - TOO MANY FAILS TO LIST! July 2015 I WILL GET IT!
AUD - AUG 2015- NEVER PASSED!
FAR - LOST CREDIT
REG - PASSED

[Anonymous]

Ok sorry if im being annoying, but one other question..

In the CY, Stan and Virginia Silver had a $82,000 of taxable income before personal exemptions. The Silvers had no tax preferences. The Silvers' itemized deductions were as follows:

State & Local income taxes $3,000

Home mortgage interest to acquire the house $9,000

Home equity interest not used to buy or build the house $3,000

Medical Expenses that exceed 7.5% AGI

Miscellaneous itemized that exceeded 2% of AGI

What amount did the slivers report as AMTI before the exemption?

A – $82,000

B – $88,750

C – $94,750

D – $97,750

[Anonymous]

Ok sorry if im being annoying, but one other question..

In the CY, Stan and Virginia Silver had a $82,000 of taxable income before personal exemptions. The Silvers had no tax preferences. The Silvers' itemized deductions were as follows:

State & Local income taxes $3,000

Home mortgage interest to acquire the house $9,000

Home equity interest not used to buy or build the house $3,000

Medical Expenses that exceed 7.5% AGI

Miscellaneous itemized that exceeded 2% of AGI

What amount did the slivers report as AMTI before the exemption?

A – $82,000

B – $88,750

C – $94,750

D – $97,750

[icanhazcpa]

dsteele are you missing some numbers there

BEC - 83
FAR - 83
REG - 74, 78
AUD - 76

Becker Self Study

[icanhazcpa]

dsteele are you missing some numbers there

BEC - 83
FAR - 83
REG - 74, 78
AUD - 76

Becker Self Study

[Heidi-O]

@Dsteele139 When Calculating the AMT you May NOT Claim:

State, local and other taxes

Miscellaneous 2% Deductions

You can claim:

Medical and Dental Expense using an 10% AGI floor

Qualified Housing Interest to Purchase, build or substantially improve your home.

Charitable Contributions

Investment Expense is deductible up to investment income (but I doubt the exam will go that far into it).

As far as the second question, I agree with ICanHazCPA in that there isn't enough information (numerical) to give you an answer or help. Is that how the question was presented to you? What software are you using? Maybe I can find it in mine… and then be able to help some…

Ok. I've gone through more than enough questions for my studies today (around 150 or so) and wrote up some additional notes where I was running short. More lectures to mow through tomorrow and then more questions and Sims!!

SILLIEPANDA Good Luck! Thoughts are with you!!! You can DO this!!

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[Heidi-O]

@Dsteele139 When Calculating the AMT you May NOT Claim:

State, local and other taxes

Miscellaneous 2% Deductions

You can claim:

Medical and Dental Expense using an 10% AGI floor

Qualified Housing Interest to Purchase, build or substantially improve your home.

Charitable Contributions

Investment Expense is deductible up to investment income (but I doubt the exam will go that far into it).

As far as the second question, I agree with ICanHazCPA in that there isn't enough information (numerical) to give you an answer or help. Is that how the question was presented to you? What software are you using? Maybe I can find it in mine… and then be able to help some…

Ok. I've gone through more than enough questions for my studies today (around 150 or so) and wrote up some additional notes where I was running short. More lectures to mow through tomorrow and then more questions and Sims!!

SILLIEPANDA Good Luck! Thoughts are with you!!! You can DO this!!

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[Anonymous]

@Heidi-O Actually the exam date doesn't expire, the reason I am taking two together is because I live in Barbados and because of that I have to fly to the U.S to take each test which is an additional expense. ( I have already flown over 5 times within the past year). So there is that, but also I work in one of the Big 4 audit firms and our busiest time is between September – December and I don't get study leave for re-sits and the chance of getting a good set of vacation around that time is unlikely.

So though It definitely is a gamble, I opted an all or nothing approach for July, which I really hope pays off, I took 3 weeks off work vacation and unpaid leave to give me the extra time to buckle down.

[Anonymous]

@Heidi-O Actually the exam date doesn't expire, the reason I am taking two together is because I live in Barbados and because of that I have to fly to the U.S to take each test which is an additional expense. ( I have already flown over 5 times within the past year). So there is that, but also I work in one of the Big 4 audit firms and our busiest time is between September – December and I don't get study leave for re-sits and the chance of getting a good set of vacation around that time is unlikely.

So though It definitely is a gamble, I opted an all or nothing approach for July, which I really hope pays off, I took 3 weeks off work vacation and unpaid leave to give me the extra time to buckle down.

[tomq04]

heidi and silliepanda-

thanks for the encouragement!

I ended up taking the day “off”, we went to the park and did clean up house work (which believe it or not, is extremely relaxing for me). A friend came over for dinner and some coal roasted burgers did me nicely. I know I “know” enough to get by, i'm just trying to calm myself and do another 600 questions by wednesday. I'll keep updating nightly I hope.

Good luck everyone going in the morning, let us know.

REG- (1) 76
FAR- (2) 64, (5)74, (7)83 (Over achiever!)
AUD- (3) 70, (4) 75
BEC- (6) 75

[Author]

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