[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/

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

[wakefern58]

@Holly In a contribution to a C-Corp where the 80% test is not met, a shareholder holder contributing non cash property would recognize gain as the FMV of asset – NBV of asset.

Now if there's liabilities on the property, im assuming that the full amount would be added to the fmv to calculate amount realized, not just the excess liabilities over NBV of assets like when the 80% test is met.

I am certain about the fmv-NBV part for no control test met, but I am not certain about the liabilities treatment when no 80% is met. The review course doesn't really go into this so it may just be me looking to deep into things.

[pharaoh]

@Holly – I think it doesn't matter in this case because it is considered a sale. The question doesn't say they assumed the mortgage and as far as I remember you only consider gain if the liability is higher than the adjusted basis.

Here is what I have in Roger:
“Although the tax basis of property is generally carried over from the shareholder to the
corporation, a special rule applies to property contributions when less than 80% (no Control) of
the total voting stock is in the hands of shareholders that contributed cash or property (meaning
that more than 20% of the stock is in the hands of shareholders that received them in exchange
for services). In such cases, the property contribution is reported at the fair market value of the
property on the date of contribution, and is reported as a sale by the contributor. “

FAR 8/2016
AUD 1/2017
REG TBD
BEC TBD

[Holly]

Because I obviously need to work on C Corp formation, I went back to NINJA and answered all of those questions. For those of you with NINJA, can you look at #1550 and see if the explanation is weird to you, too?

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

[JB]

@Holly

Ninja refers to the $50,000 as the FMV instead of the basis, which I think is wrong. Porter met the 80% test when he initially transferred ppty, so his basis is $50,000.

This is Becker's explanation (# 08465): Porter's transfer is not taxable since the 80% control test is met. The corporation's basis in the property is the basis of $50,000. Corley's transfer is taxable because the 80% control test is not met. The corporation's basis in the property is $500,000. The corporation's total basis in the properties is $550,000 ($50,000 + $500,000)

[CPA8675309]

May I ask, what are ya'll trending in Ninja and when are you testing? I'm a bit concerned, because although, I just started my review last Tuesday and thought things were going well as I went through questions, now I'm only at 68% and doing terribly with all business law questions (trending @ 53%). My averages are about the same. I know things will improve as I start focusing on weak topics, but I'm still nervous since my test is next Monday. The business law bit is frustrating, because I feel like it should be fairly easy, but my scores don't reflect that at all.

[jtvande]

I am in the same boat as you. I feel like I understand the material well but the blaw questions are killing me. I am trending 66 averaging 67 overall. I feel like the NINJA questions are WAY harder than the Roger MCQ. I am seeing a lot of blaw questions that are not covered in Roger. Just going to keep grinding I guess and hopefully my score improves before my test in two weeks. It seems to be a pretty good representation of what your actual score will be.

[Anonymous]

Testing on Thursday! I am sick of studying…Trending 80 in Ninja, I feel like i have seen all the MCQ a million times…. Plan on looking at AICPA practice test again today, I redid all of the Ninja SIMS on Friday which I scored low on…Did 130 MCQ on Sat and 130 on Sun, just to keep material fresh in my head. Read about AMT on the train, will ethics and b-law today, review my flashcards…Don't know what else to do-can't wait to take this test!

[Holly]

Does anyone know if the life insurance taxable amount over $50,000 is a set rate?

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

[wakefern58]

@Holly I've seen a practice SIM on that and the rate was given in the question as “Assume the rate is…”. I don't see anything in the review material that states a set IRS rate for this.

[wakefern58]

Do you guys advise mastering all of the tax material first before even looking at the business law material?

[Anonymous]

@wakefern-that's certainly what Becker advises! they said that while Blaw can provide a nice insurance, you cannot pass the test if you fail the tax part… I did Blaw first and then did tax, but have definitely focused my efforts on tax portion more… Even though for these tests I assume I have to know everything!

[Holly]

Thanks @wake

I actually started with blaw hoping that when I re-did those chapters SOMETHING would be familiar. Not sure that worked out well for me, though.

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

[kala]

there is no definite tax rate, it depends on the age of the person getting benefits over 50,000. here is the link for in-depth knowledge. Exam would generally give the benefit rate they want you to calculate.
https://www.irs.gov/government-entities/federal-state-local-governments/group-term-life-insurance

[Holly]

@Kusumaala I was really hoping the exam would (and assumed so) but there is a NINJA Sim that didn't give the rate and it made me question it

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

[CPAIn2018]

Hi everyone,
I took the exam today and allow me to borrow some words from the members here. It was Brutal and It Was Bloodbath.

The first testlet was fair but the second one was from another planet. I could say, there were arround 5 questions which I was sure enough i know the answers, but the rest of testlet 2 is uknown to me.

Too much info in simulation and I had 3 DRS. To make things worse, the split view is waste of time as my PC was not configured wide.(I had the same issue in FAR. Am i the only one?)

Overall, please study hard even the little details like the percentages, phaseouts, minimum requirements and tresholds.

[Author]

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