[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

[Tax lady]

Oh wow! Good luck to ya. I'm feeling the pressure. It seems like it takes me so long to get through the material but I try to be thorough. Ugh I'm getting there slowly but surely and I won't have as much review time as I would like but I should have a week at least.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[NoraU]

Exactly one month till my exam and I do not feel good at all. It is hard for me to apply the material learned to the practice questions and especially simulations. I think having no tax experiance does not help.

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[peko8535]

So the exam was pretty tough! I'm post more into the exam experience section, but it went kinda like this

Testlet 1 – Super high confidence, killed it!

Testlet 2- All confidence is gone! Flagged the first 10 questions until I got a few right in a row, and then the rest were iffy.

Testlet 3 -This testlet was harder than the first but not as bad as the second, but I didn't ace it. Flagged about a third of the questions and didn't feel to great.

SIMS – Damn these sucked. I knew 2 of the 6, but I wouldn't say I'm positive I aced them. The other 4 were tough, including the research question. Don't feel too great about them at all, guessed completely on 1. Got the research wrong for sure.

Hope I skated by with something in the high 70's, but we'll see…..

FAR - Passed! 8/23/13 (Becker Self Study and Ninja Audio)
REG - Passed! 7/24/13 (Becker Self Study and Ninja Audio)
AUD - Passed! 8/25/14 (Becker Self Study and Ninja Audio)
BEC - Passed! 11/23/14(Becker Self Study and Ninja Audio)

Now Gimme my Bonus!!!

[nigercpa]

I need some help on MACRS depreciation. I have spent some time to understand it but I haven't been able to get a grasp of it. Can someone explain the fraction used to multiply the asset basis to determine the amount of depreciation. In the Wiley text , I saw examples where 40% was used and I saw another where 2/7 was used. Below is a question from Ninja and the answer multiplied the cost after deducting the 179 expense by 0.1429. How did they arrive at the 0.1429. Please I need your help to understand this. Thanks.

“Sally Markey, who owns a heavy construction company, decided to spend some of her $2,000,000 2014 profit on a heavy-duty diesel truck costing $811,000 for her business. In order to lower her income taxes for the year, she decided to take the maximum Section 179 deduction plus the MACRS depreciation for 7-year property. The ceiling for Section 179 in 2014 is $25,000. No other capital assets were purchased during 2014. What is the total deduction for the truck in 2014?”

Answer:

Sally Markey took the largest Section 179 deduction available in 2014, $25,000. This reduced the truck tax basis to $786,000 ($811,000 – $25,000). Depreciation available for the first year of MACRS is $112,319 ($786,000 × 0.1429). Total expense is $137,319 for the year ($25,000 + $112,319).

Far - Passed 83
Aud - Passed 84
Bec - Passed 77
Reg- Passed 77

[Anonymous]

@nigercpa

I think in the first year, you use the half year convention so (2/7) /(2)

7 year property, double declining balance but for only .5 years

[Anonymous]

Hey guys,

I got back from taking the exam a few hours ago.. and I'm not feeling all that great about it… but it is what it is… I posted in the REG exam experience thread if anyone is interested… and now the wait begins… I guess I'll start studying for BEC…

[nigercpa]

Thanks Darcer. I understand now.

Far - Passed 83
Aud - Passed 84
Bec - Passed 77
Reg- Passed 77

[NEY_000]

I'm sure you did great, copypastemonkey.

Can't wait to see all of your passing scores & be so excited for everyone!!

AUD - 81 (5/5/14)
REG - 67 (7/28/14) b00; (10/3/2014)
BEC -
FAR -

[NoraU]

@nigercpa In your example dont you have a phase out dollar for dollar after $200,000 purchase for 179 deduction? Or I am cofused again?

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[Anonymous]

@Nora,

I think that is an old question. For 2014 you do have to phases out.

[Anonymous]

Hi Guys, can someone please explain me the difference between adjustment before AGI and itemized deduction after AGI? I know one is before AGI one is after, but is there a rule of thumb for me to use so when I see something, I know immediately this is adjustment or this is itemized deduction?

Thanks!

[Anonymous]

Hi Guys, can someone please explain me the difference between adjustment before AGI and itemized deduction after AGI? I know one is before AGI one is after, but is there a rule of thumb for me to use so when I see something, I know immediately this is adjustment or this is itemized deduction?

Thanks!

[Anonymous]

@coocooper the difference is in the effect on AGI..so for example:

Tax Payer (T.P.) has Gross Income of 50,000 and paid Alimony of 10,000..

Alimony paid is a “For AGI” Adjustment so it is subtracted from Gross Income to arrive @ AGI of 40,000

Why is this important? Because the AGI $ amount is used in a ton of “phase-out” and other tax benefit calculations..

generally, the higher your AGI the more likely that T.P. will not receive the full benefit of a credit or deduction or maybe none of it at all..

Finally, “From AGI” adjustments can be subject to AGI “ceilings and floors” i.e. Medical expenses above 10% of AGI are deductible..

So see the above example; If T.P. hadn't had alimony paid.. their AGI would have been $50,000 so their floor would be 10% of AGI for Medical Expenses of $5,000… why is this important? The T.P. would have to have spent at least another $1,000 (compared to 10% of AGI of 40,000 = $4,000) just to be at minimum paid and STILL has no deduction available to reduce their tax liability

I hope this helped! 🙂

[jb216]

@coocooper:

Gross Income

Less Adjustments (Educator Expense, IRA, Student Loan Interest Expenses, Tuition & Fee Deduction, Health Savings Account, Moving Expenses, Half Self Employment FICA, Self Employed Health Insurance, Self Employed Retirement, Interest Withdrawal Penalty, Alimony Paid, Attorney Fees Paid in Certain Discrimination and Whistle-Blower Cases,& Domestic Production Activities Deduction)

=Adjusted Gross Income (AGI)

Less Standard or Itemized Deductions (Medical & Dental, State Local & Foreign Taxes, Home Mortgage Interest, Charitable Contributions, Casualty & Theft Losses, Misc Itemized Deductions)

Less Exemptions

=Taxable Income

FAR 80 - 11/30/13
AUD 86 - 02/28/14
BEC 78 - 05/29/14
REG August 15

Study Material: Becker

[Anonymous]

@copypastemonkey: yes, what you explained to me is definitely helpful. But is there a way to remember which item is from AGI which item if for AGI? Or is it something that would be easier and easier as I am moving forward the material?

[Author]

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