[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

[gguzman]

Is one SIM one tab, or is one sim multiple tabs?

[hccpa]

I could really use some help/encouragement. I take REG on Saturday and I'm not confident at all, even though I'm trying to be. I'm consistently scoring in the upper 70s/lower 80s on Becker progress tests but I feel like I'm going to get beat up by the SIMS. Any advice on studying for SIMS and for these last few days of studying in general? Do progress tests even accurately give an idea of preparedness? My only plan so far is to keep cranking out progress tests and reviewing my weakest areas according to those. Any advice is greatly appreciated!!

[gguzman]

@hccpa Not sure if you have listened to any of Jeff's podcasts, but I have heard people In your position ask that exact question. Jeff generally puts a high emphasis on MCQ's, and only doing SIMS if you have the extra time. His logic is that you are able to study more material even faster with MCQ's than with SIMS.

I was skeptical of this method, but I have implemented what he said and I am having a much easier time doing the SIMS. I am not sure if you are working or not, or your situation but what I would do is harness your freaking out cause your test is on Saturday out into a giant ball of motivation to soak up as much REG knowledge that you can before your exam.

[Holly]

@gguzman I think one sim is one tab, and one testlet is multiple simulations, for a total of 8 simulations for REG

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

[Holly]

@gguzman I don't listen to those podcasts so thanks for the advice! I feel like I have a little direction this morning.

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

[gguzman]

@Holly Glad I could help! His Podcasts are pretty cool. Don't think you will have any down time until after your exam, but you should check them out when you can.

[Holly]

Here are a few things I got wrong this morning:

section 1244 – only available to original owners and still applies to inherited stock, MFJ the deduction is $50k each
Losses are not treated as losses in entity/owner transactions
Keough plan deductible contribution – when to use 20% or 25%

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

[JB]

Here's a question.

Nancy, who is single, formed a corporation during 2011 using a tax‐free asset transfer that qualified under Sec. 351. She transferred property having an adjusted basis of $80,000 and a fair market value of $60,000, and in exchange received Sec. 1244 small business corporation stock. During February 2017, Nancy sold all of her stock for $35,000. What is the amount and character of Nancy's recognized loss resulting from the sale of the stock in 2017?

A. $0 ordinary loss; $45,000 capital loss.
B. $25,000 ordinary loss; $10,000 capital loss.
C. $25,000 ordinary loss; $20,000 capital loss.
D. $45,000 ordinary loss; $0 capital loss.

[jtvande]

@Holly I got the same things wrong. I feel good about the concepts just trying to nail down all the phaseouts and exceptions now.

[Anonymous]

as someone who took REG last week, I totally agree with not spending too much time doing SIMS. I found doing SIMS for audit extremely beneficial as it complimented MCQ whereas having done them all multiple time between Becker and Ninja for REG, I can say that NOTHING could have prepared me for the SIMS on the test…They weren't even that hard, but convoluted and some were on subjects I don't recall seeing or paying attention to in my studies!!!! The wait for this score is going to kill me!

[CPAIN2K17]

@JB C

Her basis is 80,000, so the total loss is 80,000-35,000 = 45,000

Since the FMV was below her basis when she transferred the stock, she has to use the FMV to calculate the amount of loss that can be ordinary loss. So 60,000-35,000 = 25,000 ordinary loss.

The remaining 20,000 is a capital loss (the amount of her basis over the FMV when transferred).

[Holly]

@JB I say C, too

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

[JB]

@CPAIN2K17 and @Holly you guys are correct.

[Holly]

Is anyone going to be testing Friday with me?

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

[NVeg]

@Holly I wish with my schedule I was able to time it better and take Regulation this month. I test late August so it'll be hard not to look at the score release once the Quarter 2 scores come in mid-August.

[Author]

Replies