[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

[wjun15]

i noticed the net capital gain (loss) is reported on line 13 of the 1040. Doesn't cap gain for individual get taxed at special rates? so why does it get mixed in with all the other income that are taxed at regular federal tax rates? Are all capital losses and gains reported in the 1040?

I know only the 3K of capital loss can be treated an ordinary loss, so if you have enough ordinary income to offset that 3K capital loss, is that 3K not included as part of line 13?

Thanks!

[JMCAPASSO]

@Thechapman I totally agree!! I have my exam on Monday…starting to freak out here..

@wjun15 I'll try to answer some of these…1) Doesn't cap gain for individual get taxed at special rates? YES 2) so why does it get mixed in with all the other income that are taxed at regular federal tax rates? NO IDEA…the (3,000) loss is the only one that will show up if you have a capital loss in excess of that. From my experience the tax software had a separate sheet that showed us how all of the income (ordinary, capital, etc) was taxed at the separate rates. Capital losses and gains are on Sub schedule D and the net gets reported on 1040. Not sure about your last question. But, all capital gains and losses are netted on a separate schedule D and I believe now, on schedule 8949. The majority of the calculations are on that schedule and then the net flows to 1040.

Focusing on mainly tax stuff as I can remember from my last REG exam that was basically a lot of it. I've studied about 80 hours and don't think it will be enough….

Just re-reading and getting down the concepts because as Jeff says, they test on concepts and rules….

Good luck to everyone.. can't wait to have a cold beverage Monday evening!!!! I really need a passing score for once..please

AUD - 49, 66, 72, 77!!
FAR - 72, 73, 78
BEC - 70, 74, 79, I'm DONE!!!!!!
REG - 70, 76!!!! FIRST PASS

Don’t faint in the day of adversity. Remember your ABCs—Adversity Builds Character!!! - Andy Andrews

[wjun15]

thank you

For Corp,

are nonliquidating property distributions handled the same exact way as liqudiating distributions from the Corporations point of view?

is it FV – adj basis of corp (property)

for both cases? I saw a question on becker saying that if the corporation distributes property to the shareholder…you have to take the GREATER of FV of property and liability assumed by shareholder and then subtract the adj basis…i had never seen an equation that said u have to take the greater of FV and liability assumed…just a little confused on this one.

Thanks

[Dan T]

Quick question. Are distributions the same as guaranteed payments for a partnership?

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[Anonymous]

Dan, distributions are not the same as guaranteed payments. Distributions reduce partner basis and are not deductible for income. Guaranteed payments are basically a salary, have no affect on basis and are deductible for net income.

[oblio]

Heads up if using Wiley test bank, there seems to be some serious errors in their Individual tax SIMs. Even their explanations are not matching their corrections, i.e. I'm sure it's not just me making mistakes here.

Very frustrating for exam week.

BEC – 67, 81(exp)

AUD – 68, 93

FAR – 80

REG – TBD

[leglock]

@wjun15,

I think you may be intermixing a few concepts. In Becker's material, the distinction of liquidating vs nonliquidating was made with respect to partnerships. Generally, you use nbv not fvalue in these situations. For liquidating distribution involving a pship, there were 3 scenarios Becker presented. In the second scenario you were selling your interest in the pship to an outsider and they gave you propety. In this case you, you utilize fval of property as proceeeds received.

Different than this is when you initially capitalize a corp or pship, the entity's basis in the propety received is the greater of nbv + gain recognized by shareholder, or liability assumed

Yet a different situation is if you receive a property dividend from a c corp in which case the corp marks it up to fval and recognizes a gain, and the shareholder books the dividend at fval.

[thechapman]

Are you guys studying different schedules and forms that accompany the 1040? Not sure how in depth I should know them…any opinions?

Passed - 2014

[How many letters do you need]

Just one thing to add to Adams point on guaranteed payments. Be careful because questions can say income before or after guaranteed payments when asking basis questions. Guaranteed payments don't directly affect basis in and of themselves assuming they are already taken out of ordinary income…However if the problem states ordinary income before guaranteed payments remember to deduct them before adding ordinary income to the basis.

MBA,CMA,CPA, CFF?, ABV?

[leglock]

Extremely important point just made by How many letters do you need.

[Anonymous]

@wjun @leglock Just to add to leglock's explanation, the dividend when a C-corp distributes property is FMV-liability assumed by the shareholder. Also, the gain is FMV-basis, however, if the liability on the property is greater than FMV, the gain is computed as liability-basis.

[leglock]

Per adam8199 explanation, I was totally unaware that the property dividend to be recognized by shareholder is fmv-laibility assumed by shareholder. I thought it was just fmv of property rec'd (irrespective of if a liability is assumed or not). Becker's book does not provide this extra info, so thank you to adam8199.

Thanks again on your second sentence as well, as Becker does not provide this info either.

[Jspann225]

Cram week is upon us. Today is also the first day of my last semester of grad school. I hope my teachers understand why I will be completely ignoring everything they say until after Friday.

Teacher: Jspann, Can you provide insight to this question?

Me: Nope, sorry, REG on Friday.

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

[RachelP]

Ok, joining this group as of today!! Haven't gotten my NTS yet, but I plan on sitting for the exam after Oct 15 extensions deadline so I don't take time away from my team to take the exam. Good luck to everyone who is taking their test the last part of Q3!!

One more left for me wooohhooooo!!

"Don't worry, beeeeee happy!"

Unhappy with job, long distance boyfriend, not much studying:
FAR- 66 [08/28/12] AUD- 61 [10/04/12] REG- 59 [11/28/12] BEC- 63 [01/11/13]
Year off (from exams): Got new job, got married, moved, etc
✓ AUD- 79!!! 01/10/14 FIRST PASS!! WOOOO!!!
✓ REG- 73 02/27/14, 81 10/27/14
✓ FAR- 83 5/16/14
✓ BEC- 80 7/24/14
✓ Education ✓ Experience
Ethics Exam

[Anonymous]

Is anyone using the NINJA questions? amazing how low my scores are =(. I can't get above 63% and I've been at this for a while. I don't get it. I've put more effort into REG than anything. More full practice tests, more notes, not MCQ's and still my scores just don't get better. It's B-Law that's killing me. Anyone have advice for how to remember everything (doesn't make sense).

[Author]

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