[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

[samdiegoCPA]

Haven't been on here for awhile but have been studying REG on and off since May! I got a FT job so now it's a HUGE struggle. I try and study before my manager gets in… then on and off during the day (I work “throughout” my hour lunch so whatever :P)

I get home and hang with my feathered child for 2 hours then try and study… so so so hard.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[MurphyNish]

stock inherited Uncle's basis $5000, FMV time of death was $8500. Sold stock 6 months later for $9,200. what is basis , and gain/loss. Becker solution says basis is 8500. The way I understood the basis for gifts is if you sell the property for more than the donors basis, then you should use the rollover cost basis of the donor to determine gain or loss. Is the basis $8,500 because the stock was sold for greater than FMV?

[MurphyNish]

stock inherited Uncle's basis $5000, FMV time of death was $8500. Sold stock 6 months later for $9,200. what is basis , and gain/loss. Becker solution says basis is 8500. The way I understood the basis for gifts is if you sell the property for more than the donors basis, then you should use the rollover cost basis of the donor to determine gain or loss. Is the basis $8,500 because the stock was sold for greater than FMV?

[Anonymous]

you are getting gift basis and inheritance basis mixed up.. Gift basis= donor basis, inheritance basis= FMV at date of death

[Anonymous]

you are getting gift basis and inheritance basis mixed up.. Gift basis= donor basis, inheritance basis= FMV at date of death

[Heidi-O]

MurphyNish just to add a little to what CPAwanabe said – When someone dies, you have two options for a valuation date – either the date of death or 6 months after the date of death. This is decided by the executor of the estate.

One funky thing that they will throw in the question is when the estate has decided to use the alternate date (6 months later) and the stock is sold before you reach the 6 month time period. In that case, it is the FMV on the date of the sale of the stock.

Died January 15 – Alternate valuation method decided, which would be July 15 (6 months later)

April 2 – Sold the stock – use the FMV at April, date of sale.

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

[Heidi-O]

MurphyNish just to add a little to what CPAwanabe said – When someone dies, you have two options for a valuation date – either the date of death or 6 months after the date of death. This is decided by the executor of the estate.

One funky thing that they will throw in the question is when the estate has decided to use the alternate date (6 months later) and the stock is sold before you reach the 6 month time period. In that case, it is the FMV on the date of the sale of the stock.

Died January 15 – Alternate valuation method decided, which would be July 15 (6 months later)

April 2 – Sold the stock – use the FMV at April, date of sale.

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

[Jennifer241]

This business law information is soooo drab, how did you all make it through it without killing yourself. Seriously, any pointers in keeping my focus here.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Jennifer241]

This business law information is soooo drab, how did you all make it through it without killing yourself. Seriously, any pointers in keeping my focus here.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Heidi-O]

Jennifer241 If you made it through Audit you can make it through business law!! It's memorization. I took outlined notes as I went through the chapter in Becker – it helped me to stay focused on the material and to stop my mind from wandering to more interesting topics like “Why do my flights leave from a “gate” at the airport when there aren't any gates to be found?”

🙂

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

[Heidi-O]

Jennifer241 If you made it through Audit you can make it through business law!! It's memorization. I took outlined notes as I went through the chapter in Becker – it helped me to stay focused on the material and to stop my mind from wandering to more interesting topics like “Why do my flights leave from a “gate” at the airport when there aren't any gates to be found?”

🙂

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

[k1zuna]

Becker keeps mentioning the difference between income vs. corpus. Where do we need to use this?

Also, can anyone verify this: when calculating DNI, we include all revenues and expenses related to BOTH income AND corpus (disregarding the capital gain and tax-exempt interest rules). Correct?

==============================

becker final exam #2 questions:

Sim #3: “capital gain distribution” is reported on line 8 of k-1? I thought all distributions go on k-1's line 17-distributions?

Sim #5: “income from rental real estate, partnership, s-corps…”

How come Section 179 depreciation reduces income from Technology Plus?

Does Section 179 depreciation from a partnership/s-corp only go on Schedule E?

Testlet 3 #11 – answer says state income tax of the business should be reported on owner's 1040 itemized deduction. WTH?

FAR - Passed
AUD - Passed
BEC - Passed
REG - 8/22/2013

[k1zuna]

Becker keeps mentioning the difference between income vs. corpus. Where do we need to use this?

Also, can anyone verify this: when calculating DNI, we include all revenues and expenses related to BOTH income AND corpus (disregarding the capital gain and tax-exempt interest rules). Correct?

==============================

becker final exam #2 questions:

Sim #3: “capital gain distribution” is reported on line 8 of k-1? I thought all distributions go on k-1's line 17-distributions?

Sim #5: “income from rental real estate, partnership, s-corps…”

How come Section 179 depreciation reduces income from Technology Plus?

Does Section 179 depreciation from a partnership/s-corp only go on Schedule E?

Testlet 3 #11 – answer says state income tax of the business should be reported on owner's 1040 itemized deduction. WTH?

FAR - Passed
AUD - Passed
BEC - Passed
REG - 8/22/2013

[Heidi-O]

@k1zuna Lots of questions there! I will try to see if I can help with some. Income vs Corpus – a corpus is the amount that exists in a Trust (Simple or Complex) or an Estate. I will assume that they are talking about Trusts.

Simple Trusts make distributions out of current income only and ALL income must be distributed.

Complex Trusts MAY make distributions out of the principal (corpus) and the income may be accumulated within the trust (no income distribution is required).

DNI Calculation – you would disregard the Capital Gain attributable to the Corpus you would not disregard the Capital Gain attributable to the income. You can make capital gains from the Corpus of the Trust/Estate and from the Income items in the Trust/Estate. Also, you want to add back in the Adjusted Tax Exempt Interest.

Sounds like you should review this section in your Book. I don't want to confuse you. Someone else may do better at explaining this one.

As Far as the K-1 – something that helped me TREMENDOUSLY was to get the Form 1065 from the IRS and print it out along with the K and K1.

On a K1 – which goes to the individual partners, line 17 is Alternative Minimum Tax Items.

Line 8 is Net Short-Term Capital Gain (loss) and Line 9a is Net Long Term Capital Gain (Loss)

Keep in mind, the From 1065 (K and K1) is an Information Return Only. They are used by the Shareholder/Partner to calculate out their own individual taxes – since it just flows through to the individual. Each owner has to fill out the information from their K1 to their own personal 1040 Schedule E.

Section 179 deductions are on Line 12 of the K1.

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

[Heidi-O]

@k1zuna Lots of questions there! I will try to see if I can help with some. Income vs Corpus – a corpus is the amount that exists in a Trust (Simple or Complex) or an Estate. I will assume that they are talking about Trusts.

Simple Trusts make distributions out of current income only and ALL income must be distributed.

Complex Trusts MAY make distributions out of the principal (corpus) and the income may be accumulated within the trust (no income distribution is required).

DNI Calculation – you would disregard the Capital Gain attributable to the Corpus you would not disregard the Capital Gain attributable to the income. You can make capital gains from the Corpus of the Trust/Estate and from the Income items in the Trust/Estate. Also, you want to add back in the Adjusted Tax Exempt Interest.

Sounds like you should review this section in your Book. I don't want to confuse you. Someone else may do better at explaining this one.

As Far as the K-1 – something that helped me TREMENDOUSLY was to get the Form 1065 from the IRS and print it out along with the K and K1.

On a K1 – which goes to the individual partners, line 17 is Alternative Minimum Tax Items.

Line 8 is Net Short-Term Capital Gain (loss) and Line 9a is Net Long Term Capital Gain (Loss)

Keep in mind, the From 1065 (K and K1) is an Information Return Only. They are used by the Shareholder/Partner to calculate out their own individual taxes – since it just flows through to the individual. Each owner has to fill out the information from their K1 to their own personal 1040 Schedule E.

Section 179 deductions are on Line 12 of the K1.

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

[Author]

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