[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for REG. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your REG exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

[pcunniff]

@julia – you can take the full PAL in a year of disposal or sale. In this case, that happened. Otherwise PALS can only offset passive income. Also keep in mind of the mom and pop role of 25k in which the t-payer materially participates and owns over 10% of rental activity.

[jeff]

Be sure to post in the FB thread for your entry to count 🙂

[Julia]

@pcunniff: thank u. My real question is AGI. Does passive get deducted to get to AGI ? I thought it was deducted after on schedule E.

[Julia]

@Jeff I think its D historical cost.

[pcunniff]

Question below:

D and C signed a contract requiring C to rebind 500 of D's books at 80 cents/book. Later D, in good faith, reduced the price to 70 cents per book
C agreed orally to reduce the price to 70 cents. Under these circumstances, the oral agreement is

a) enforceable, but proof of it is inadmissible into evidence
b) unenforceable, because d failed to give consideration, but proof is otherwise admissible
c) enforceable, and proof of it is admissible into evidence
d) unenforceable due to the statute of frauds, and proof is inadmissible

I chose c but the answer is b. Why is consideration needed here? If you could help me out – that'd be great!

[CPAIN2K17]

I have seen a few people ask about this so I thought I'd share, the Wiley REG professor says we do not need to memorize phase out amounts because these are indexed for inflation each year. The only amounts we need to memorize are those that are not indexed for inflation.

[Julia]

@pcunniff: found it in Becker R6. Modification not enforceable unless consideration given. This only applies in sale of goods. Its in the consideration section of Contracts.
Its admissible b/c of parole evidence.

[pcunniff]

I completely understand that oral evidence is admissible after the fact of breach (written is not allowed). However, when it says in Beckers R7-22, NEED NOT HAVE MONETARY VALUE. I guess I just see this as “If C were to rebind and additional XXX books” or something of that nature – it would be consideration. In this case, C would have to do something in order for it to be enforceable. I think I got it – thanks Julia.

[Holly]

Alrighty!! Just finished Becker and now it's on to NINJA MCQ for review before finalizing with Becker's mock exams!! 7/29 hurry up!

BEC - 79
REG - 85
AUD - 5/27/16

[CPAIn2018]

@Holly
Feeling jelous here. You were ahead of me by one chapter, while I was doing Chapter 2, u were in 3. I hit a wall in chapter 3 and loaded with work time and time again. I just started 4, and u r done with Beckers. To make my situation worse, my exam is mid July. Got to do something!ouuuuuy!

[Anonymous]

@Holly

How many weeks did it take you to get through REG Becker and how many hours a day did you study?

[Holly]

@brodie5 my last test was 5/19, I took a couple of days off and started again. Maybe a month? I try studying 3 hours a day. It's difficult to get my hours because I have a one year old and a husband who works away.

BEC - 79
REG - 85
AUD - 5/27/16

[jtvande]

Been following for a couple of weeks finally bit the bullet and purchased Ninja MCQ. This is my first exam. Started studying 6/1 with Roger. Going through the lectures and doing Rogers MCQ. Individual and Corporate was okay but Struggling with property transactions. Having a really hard time with all of the SIMS. Im thinking I will use NINJA MCQ the last two weeks as a final review. Would appreciate feedback on what yall think about that strategy.

REG – 8/7 NINJA in Training

[pcunniff]

@Julia – So the PAL would be accounted for in schedule E, which flows through the face of the 1040. So you are right in terms of it being in E. But look at line 17 (rental real estate, royalities,pships..etc) on the 1040, which is an above the line or above AGI deduction.

Makes sense?

[Julia]

@pcunniff: thank u , that helps. I started the Sims this week and think I c it now. But that clears it up better. Thanks!

Im in Sims #45. I plan to use this week to do rest of the 30 and redo alllll 75. It took bout 4 hours to do 25, but kept getting interrupted. Then it took 2.5 to do 20. With beach waves and thunderstorm white noise.

By my calculations: all 75 Sims should take bout 9 to 11 hours total.

[Author]

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