[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

[Anthony]

You apply it when you have related party sales.

[jeff]

New podcast in case you missed it 🙂

Full Post: https://www.another71.com/cpa-exam-task-based-simulation-time-management/

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

[Andria – Another71]

REG Test Your Might! Be sure to answer on the FB thread to be eligible to win. HiYa!

[jguy621]

@Anthony is correct. This only applies in a related party transaction. If he would have sold it to someone that qualified as a related party, I believe that logic would be correct. However, since he sold it to a non-related party, it's the original basis less the cost of the transaction.

You got this!

I took this test and focused so heavily on tax. I knew tax through and through. Well, failed because my test was not as heavily tested on tax as I thought it would be. Wanted to share in case someone else thought the same. I retake in Aug and am studying like crazy to make sure I don't have weak areas again! 🙂

Good luck to all!

[meriden203]

Hi, I would like to ask you guys a question on this.

On their joint tax return, Sam and Joann, who are both over age 65, had adjusted gross income (AGI) of $150,000 and claimed the following
itemized deductions:
Interest of $15,000 on a $100,000 home equity loan to purchase a motor home
Real estate tax and state income taxes of $18,000
Unreimbursed medical expenses of $15,000 (prior to AGI limitation)
Miscellaneous itemized deductions of $5,000 (prior to AGI limitation)
Based on these deductions, what would be the amount of AMT add-back adjustment in computing alternative minimum taxable income?
A. $21,750
B. $23,750
C. $35,000
D. $38,750

Choice “C” is correct.
The “PANIC TIME” add-back is as follows:
Taxes $ 18,000
Home mortgage interest not used to buy, build, or improve a qualified dwelling (the motor home is not a qualified dwelling) 15,000
Deductible miscellaneous expenses in excess of 2% of AGI 2,000
Total $ 35,000

My understanding is that the AIG of $150,000 is before any itemized deductions So why you have to add these items back?
Thank you so much!

[jguy621]

@meriden203 you are adding them back because the first line of calculating AMT is taxable income, which was reduced by all itemized deductions. You add back itemized deductions that aren't covered by AMT. The question isn't asking you to add back to AGI, it is only giving you AGI because you can't calculate what needs to added back without it. Miscellaneous itemized deductions are only deductible over 2% of AGI, so they are giving you the 150K in order to calculate the amount they deducted to get to taxable income. Which in this case was 2K (5K total – 3K (2% of AGI)). Misc Deduction subject to 2% rule are not AMT allowed.

I hope this helps, hard to explain this way! 🙂

[gguzman]

I feel like I am back on track with a plan.

Taking 30 MCQ Progress tests. Any module I get less than 80% on I am doing every MCQ in that Module, and taking notes on what I got wrong.I will re-due all SIMS when I am done with this.

I am thinking about re-copying my notes into a new notebook.

[Anonymous]

Hello everyone-took REG yesterday…Well, came out feeling like someone punched me….Really a crappy feeling all around…two SIMS were totally a WTF moment, I think all of them were DRS, but the subject matter itself wasn't difficult and I hope I completed them close to 100%…I nailed the research question…The last SIMS was kind of confusing and I did the best I could. MCQ never got difficult, even though there were some puzzling ones. I have to say I have never felt MCQ get difficult with BEC and I got an 82…I am taking a bit of a break before I start studying for my last one-FAR (save the best for last right?)

I have to say that all these tests are kind of a letdown, you study and you think you are doing well in review, you go over countless SIMS and MCQs (two test banks) and you get there and feel like nothing you could have done would have prepared you for it.

Finally, I have said it before and I will say it again-the % breakdown of content is BS-you have to know EVERYTHING! 🙂

[Holly]

@anyatver I kind of felt the same way with the MCQ on FAR, and that made me think holy crap I stayed in medium so I didn't do good. Auditing I don't really remember, but that test took me a lot longer than FAR did and I did much worse. Maybe it's a good sign!

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

[meriden203]

@jguy621 Thank you so much for your explanation. It really helped a lot.

[Anonymous]

@holly-thank you-I hope so! not knowing the score for 2 out of 3 tests I have taken this year so far is crazy… But at least I have taken 3 out of 4 and that gives mi solace!:) Good luck on your test next week!

[Holly]

@anyatver thanks! I'm so excited to get this test over with because I am so sick of studying at this point.

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

[Holly]

Becker CPA 06412

Why is the basis not $16,000? The formula in the book R3-19 has FV of property received – def gain = new basis.

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

[Holly]

Never mind I just answered my question

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

[Anonymous]

@holly-yes, that's exactly how I felt the last couple of weeks! And this is the last (hopefully!) test you have to take? How exciting! Enjoy the rest of your summer after next week!

[Author]

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