[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

[CPA so close, so far away]

So if, for example, the facts said that a partnership paid Partner A $20,000 for salary and $2,000 of health insurance premiums, does the partnership for 1065 have a deduction for $22,000?

[jtvande]

Does anyone know if we have to memorize the actual amounts for penalties. Or do we just know what penalties exist and for what? Test is on Monday just realized I never attempted to memorize any of that information.

[gguzman]

@cpa based on what it says on page Becker V3.1, R5-37 , that's what I would have put.

[CPA so close, so far away]

Most of the penalties are $50 per offense for preparers, except EIC penalty and endorsing a client check.

Most taxpayer penalties are 20% for the most part.

Just get the main ones down.

[BBHYX]

I was under the belief that health insurance premium paid for the partner are not deductible for the partnership because of that sim where it was not deducted in calculating ord income for the partnership. now i am very confused….

[jtvande]

I still can not get the last answer on the practice AICPA exam. I would really appreciate it if someone could help me out.

“Remaining basis before sale using the actual expense method since purchase”

Thanks

[jtvande]

question number 2

[BBHYX]

For anyone using becker, R4 sim set 1, Q2 — anyone know why the asset basis michell controbuted isn't 50,000?

If someone contributes (meeting the 80% criteria) to a corporation an asset with a liability that is greater than the basis of the asset, isn't the corporation's basis in that asset equal to the greater of the basis or liability? And the contributer has a taxable gain?

[CPA so close, so far away]

@xyz107 I'm pretty sure I emailed Becker about that one. I think (and i'm trying to remember correctly) that Mitchel also contributed cash. And the combined basis of the cash and the basis in the property was greater than the liability.

[palmettovike]

So I am taking the exam September 7th? Anyone know how thats possible? I was given the option so I took it but I am concerned that I was not supposed to sign up that day even tho I was given the option. The only reason I can think of is that there used to be a test center right near my house and I cannot go to that one for some reason when I signed up.

Good luck to all!

[CPAIN2K17]

@palmettovike the testing window doesn't end until September 10th, so there's no reason you couldn't take it September 7th.

[BBHYX]

@cpa so close– thank you so much! makes sense now haha i wish becker could just explain that in the solutions…

[BBHYX]

What would be the basis in this case?

inheritance –
FMV at date of death = 10
alternative valuation date selected
FMV at distribution (4month later) = 12

Would it be 12? I thought that you can only use alternative valuation fmv if it decreased the value? So would it be 10?

[gguzman]

9 days until my exam and still trending in the 60's. Am I just doomed? So hard to stay motivated.

[CPA so close, so far away]

@gguzman Just keep plugging along. How are you doing in Becker's progress tests? What are your weak points?

[Author]

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