[Q3] REG Study Group 2014 - Page 89

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  • August 22, 2014 at 4:05 pm #591949
    spartan14
    Member

    Confused on this one because I don't see how this fits into any of the categories of For AGI deductions…

    Dale received $1,000 in the current year for jury duty. In exchange for regular compensation from her employer during the period of jury service, Dale was required to remit the entire $1,000 to her employer in this year. In Dale's current year income tax return, the $1,000 jury duty fee should be:

    a. Deducted from gross income in arriving at adjusted gross income.

    b. Claimed in full as an itemized deduction.

    c. Claimed as an itemized deduction to the extent exceeding 2% of adjusted gross income.

    d. Included in taxable income without a corresponding offset against other income.

    Explanation

    Choice “a” is correct. The $1,000 jury duty fee that was required to be remitted to the employer may be deducted from gross income in arriving at adjusted gross income. This, in effect, washes out the $1,000 income she will have to report as part of gross income for the jury duty fees paid to her.

    AUD- 99 (5/29/14)
    FAR- 92 (7/3/14)
    REG- 93 (8/22/14)
    BEC- 94 (10/11/14)

    August 22, 2014 at 4:25 pm #591950
    How many letters do you need
    Participant

    Spartan: Jury duty is one of the deductions to arrive at AGI. The logic is, you have jury duty pay already rolled into your gross income…but since you had to remit to your employer you can deduct it from your gross to arrive at AGI. Since some people don't remitt to employer it makes sense that it has to start as part of everybody's gross income and then those that didn't keep it get to deduct it to arrive at AGI.

    MBA,CMA,CPA, CFF?, ABV?

    August 22, 2014 at 4:31 pm #591951
    spartan14
    Member

    That makes sense, thanks. I'm starting to see 4 and a half hours before my exam how much the Becker textbook decided to leave out.

    AUD- 99 (5/29/14)
    FAR- 92 (7/3/14)
    REG- 93 (8/22/14)
    BEC- 94 (10/11/14)

    August 22, 2014 at 4:43 pm #591952
    How many letters do you need
    Participant

    You aren't the first one I've heard say that about Becker. Still, whatever you have been doing has clearly been working based on your scores. Good luck, you got this…

    MBA,CMA,CPA, CFF?, ABV?

    August 22, 2014 at 4:44 pm #591953
    spartan14
    Member

    Fingers crossed, thank you!!

    AUD- 99 (5/29/14)
    FAR- 92 (7/3/14)
    REG- 93 (8/22/14)
    BEC- 94 (10/11/14)

    August 22, 2014 at 5:11 pm #591954
    JamesBJames
    Participant

    Good luck, @spartan14!

    I just finished my last REG lecture and my lest REG MCQ. Still got a couple of SIMs to do but, eh, whatever. It's finally over with.

    I'm glad I saved R3 (corporations) and R4 (property, partnerships, trust, estate, gift) for last. Becker really crams a lot of stuff in there.

    FAR: May 1st, 2014 - 91
    AUD: May 29th, 2014 - 97!
    BEC: July 16th, 2014 - 91
    REG: August 29th, 2014 - 88

    Licensed December 2015

    Feel free to add me on LinkedIn by clicking my username!

    August 22, 2014 at 5:23 pm #591955
    Anonymous
    Inactive

    Question about transfer of property to a corporation. If the corporation is not a controlled corporation, then the basis for the shareholder and for the corporation is FMV, with the shareholder basis reduced by any liability the corporation assumes, correct?

    August 22, 2014 at 5:58 pm #591956
    spartan14
    Member

    Thank you JamesBJames!

    @adam I could definitely be wrong, but I thought that a corporation's basis is always the greater of NBV (plus gain recognized by shareholder) or debt assumed, except for when NBV exceeds FMV of property.

    AUD- 99 (5/29/14)
    FAR- 92 (7/3/14)
    REG- 93 (8/22/14)
    BEC- 94 (10/11/14)

    August 22, 2014 at 6:11 pm #591957
    Jspann225
    Member

    There is one exception. If 1 person owns over 90% of the interest and a second person contributed property for the other 10% interest. The corporations basis for the second shareholder's contribution will be FMV.

    FAR - 93 - 7/1/14
    AUD - 94 - 7/25/14
    REG - 92 - 8/30/14
    BEC - 89 - 10/6/14

    August 22, 2014 at 7:24 pm #591958
    Tootsie
    Member

    Hi, REGGIES (yes, I just made that up for all REG test-takers)! So I finished the “Business Structures” lecture and questions. I actually remember some of it from college! Done reviewing chapters 1 through 3 and will start chapter 4 review tonight. I have 8 days left of studying…so glad I moved my exam date to 8/31. I am starting to get anxiety as exam day gets closer; I did a seating meditation yesterday, which helped some.

    FAR - 76
    AUD - 88!!! DONE!!!!!!!!
    BEC - 76
    REG - 77

    never, never, never give up

    August 22, 2014 at 8:06 pm #591959
    Anonymous
    Inactive

    @spartan14 If it's a non controlled corporation then wouldn't the shareholder recognize gain of FMV-basis when contributing property? If that is the case, then wouldn't basis+gain be FMV? I'm not sure though.

    August 22, 2014 at 8:23 pm #591960
    Jspann225
    Member

    I am facing extreme burnout. I am having a hard time reviewing some of the material. I can't go more than a few questions without wanting to get away from the computer. I think I need a day off.

    FAR - 93 - 7/1/14
    AUD - 94 - 7/25/14
    REG - 92 - 8/30/14
    BEC - 89 - 10/6/14

    August 22, 2014 at 8:36 pm #591961
    How many letters do you need
    Participant

    That happened to me before FAR. Couldn't focus at all. It was already two days before the exam though so I just put the MCQs away and focused on notes. Being that we are only a week away I would suggest against taking a day off with nothing, it could make it hard to go full speed again the day after. I would suggest just take a day to re-write and/or review notes, listen to audio or that kind of thing. Sometimes the part of our brain that is in charge of logical reasoning just needs a break, but that doesn't mean you can't spend some time memorizing some of the more non-logic type of material (maybe business law or prof. Responsibilities)…

    MBA,CMA,CPA, CFF?, ABV?

    August 22, 2014 at 9:28 pm #591962
    JamesBJames
    Participant

    I don't think taking a day off is all that bad, personally. Sometimes you really just need a break so you can recharge. I think taking two days off is when it starts to get detrimental. Whenever I did that, it was so hard to start back up again.

    So, at the moment, I'm trying to decide how painful it would be to do all 1600+ of Becker's MCQs again in the week leading up to my exam, similar to what I did for AUD. Or, I could take the other route and just do tons of progress tests like I did for FAR and BEC. There's a ton of material in REG and not a lot of overlap between sections, and I'm not sure which the best option is.

    What are the rest of you guys doing for review?

    FAR: May 1st, 2014 - 91
    AUD: May 29th, 2014 - 97!
    BEC: July 16th, 2014 - 91
    REG: August 29th, 2014 - 88

    Licensed December 2015

    Feel free to add me on LinkedIn by clicking my username!

    August 22, 2014 at 10:06 pm #591963
    kappa1032
    Participant

    I'm bumping James's question – in the same position, taking REG on 8/29 and have a week to review…

    FAR - 81
    REG - 74, 87
    AUD - 88
    BEC - 88

    Finally.

    “The only guarantee for failure is to stop trying”
    ― John C. Maxwell

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