[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

[Anonymous]

Tulip-which study material did you use? When you say it was from another planet, is it the subject matter or the way questions might have been worded?

[jtvande]

Tulip – Would you say NINJA MCQ prepares you well for the test?

[nickbuko]

If it makes you feel any better…the exam is set up so that depending on how you do on the first MCQ testlet, the 2nd one will be easier if you did poorly on the first or harder if you did well on the first. So if the 2nd testlet was really hard, it probably means you did well on the first one.

[CPAIn2018]

@anyatver
I used Beckers. It is nit the sunject matter. I would say,it changed gears with complications and tricks added on. Not striaghtforward like the first one. More to the application side.
@Jtvande. I bought Ninja McQ, but did not got the time to work on it. To be frank, I wish I had time and did that.


@Nickbuko
I pray it is like what you said, but I never felt like that in my previous three exams and I scored great in the two and waiting on FAR.

[Andria – Another71]

AUD Test Your Might – Be sure to answer in the thread to be eligible to win a freebie!

[BBHYX]

Hey guys — recently took FAR and about to jump into REG. I'm not looking forward to this because tax was one of my least favorite subjects in undergrad. Hoping becker is enough because I honestly feel like I learned nothing in school and am starting from scratch this time. Wondering if you guys thought it's imperative for the REG chapters to be studied in order or if REG is one where you can jump around a bit.

[appy]

can anyone explain the treatment of medical expenses in excess of 10% of AGI in the calculation of AMT?

[kala]

Medical expenses for anyone less than 65 years of age does not have any difference between AMT and regular tax. It only comes into place if you dealing with person who is 65 years or older. For example:

AGI: 100,000 Medical expenses 15000
For someone under 65 years age.
Regular taxable income:
100,000 – (15,000- 10% of 100,000)= 100,000-5000= 95,000

AMT: Same as above.
For someone above 65 years of age:
Medical expenses at 10% AGI: 10,000
Medical expenses at 7.5% AGI: 7,500

Regular taxable income 100,000-(15,000-7.5% of AGI)=92,500

AM taxable income: 92500+2500=95,000 (usually you will have to add back the difference in medical expenses between 10% AGI and 7.5% AGI)..

Corrections are welcome!

[appy]

there is an mcq in Becker(CPA- 07183), a person over 65 years, AGI $150,000, unreimbursed medical expenses of $15000(prior to the AGI limitation), would the same logic apply here?

[kala]

I saw the same on rogers too, and gave it a second thought after looking at IRS explanation, Line 2: Medical Expenses: If you itemize deductions, medical deductions have to exceed an additional 2.5 percent of your AGI with the AMT for the person 65yrs. that means they are subject to 10% limitation. in that case for the above problem, 10 of AGI 15,000 medical expenses deduction will be zero add back. the logic is same, if you compare the regular taxable income and the AMTI, the difference will be the 2.5 % medical expenses.

[appy]

so, for any age group, for AMT calculation, the limit would be 10% (7.5% limit for those over 65 is to be ignored) and any excess medical expense over 10% limit would be treated as an allowed itemized deduction for AMT, not added back to AGI, right?

[Anonymous]

@appy-correct

[Anonymous]

I had a dream about the American Opportunity tax credit last night-I was calculating it in my sleep-I am taking it as a good sign two days before my test, right? 🙂

[Holly]

@anyatver I don't know! For your sake I hope! I have been watching Lost before bed and my dreams are usually about something shady going on and accounting.

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

[Holly]

I deleted my statistics on both Becker and NINJA. I'm not sure if I'm crazy.

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

[Author]

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