[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

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

[jfernandes256]

@amor thank you! What does TP stand for?

[Amay]

Destry, a single taxpayer, reported the following on his U.S. Individual Income Tax Return (Form 1040):

Income:

Wages $5,000

Interest on savings account 1,000

Net rental income 4,000

Deductions:

Personal exemption $ 3,950

Standard deduction 6,200

Net business loss 16,000

Net short-term capital loss 2,000

What is Destry's net operating loss that is available for carryback or carryforward?

A. $7,000

B. $9,000

C. $15,700

D. $16,000

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

TP = Taxpayer:)

[jfernandes256]

The Rites are married, file a joint income tax return, and qualify to itemize their deductions in the current year. Their adjusted gross income for the year was $55,000, and during the year they paid the following taxes:

Real estate tax on personal residence $2,000

Ad valorem tax on personal automobile 500

Current-year state and city income

taxes withheld from paycheck 1,000

What total amount of the expense should the Rites claim as an itemized deduction as a result of their tax payments on their current-year joint income tax return?

A. $1,000

B. $2,500

C. $3,000

D. $3,500

[Amay]

@Amor not good. 50's/60's, but I still have not reached my review stage even though I should be already at this point. Let's see how the next few days pan out but all signs are pointing to rescheduling.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[jfernandes256]

Can we assume “Current-year state and city income taxes withheld from paycheck 1,000” will be a refund? Also, is the automobile tax miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income floor?

[Anonymous]

Hey guys, I am signing off now. My brain is half-sleep already. See you all again tomorrow. Thanks.

[Amay]

B – 2,500

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[jfernandes256]

@Amor have a good night! See you tomorrow!

[jfernandes256]

@Amay I choose B as well, but the answer is letter D. The Ninja MCQ test bank does not give a detail explanation for this question. I am thinking that because the state and city income taxes were withheld from the taxpayer's paycheck then it was technically “paid” by the taxpayer. If a taxpayer pays for state and local taxes, then he/she can include the amount as an itemized deduction.

[jfernandes256]

To answer your question, the answer is A.

[Amay]

Yes, correct! Well I'm heading out too. Tomorrow shall be a new day. Good night!

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[jfernandes256]

good night!

[Michelle H]

Hi, I just joined this study group few minutes ago. I am planning to take REG on 8/29 and I am using Becker & Wiley online test bank. Hopefully I can be part of this big group and study with you all together.

Thanks

[Anonymous]

Ugh, need the motivation to start Corporate Taxation… less than 3 weeks till the exam…

[Author]

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