[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/

[pcunniff]

Anyone know the difference between forms 706 and 1041? I dont know when you would use one vs the other. This is for estates

[Lamis]

Form 706 Estate tax return its taxed once before the transfer on the value by its FMV,
While form 1041 its annual income tax return generated from the estate before its transfer , the beneficiaries are taxed on it by DNI “distributable net income” and deducted by the estate.

[McGboye]

I've passed every paper at one sitting except REG. Failed twice now. 65 & 62. And it's the course i've spent the most time studying. Last time I wrote REG on May 15, ordered for material on FAR the day after and wrote FAR on May 31 and i got 85 in FAR. So i am at a loss what the problem with REG is. What else can i do?

[Lamis]

Do you guys have any information about “Assignment” of contracts ? I can't find it in the new version , is it testable ?

[pcunniff]

@mcgboye I am having a similar problem, but after taking it twice – I know what my problem is. I think Becker does an okay job of explaining everything, but I recall getting a sim that had to do with plotting down facts into form 1040, 1041, 706, and 709. This really threw me off because Becker goes into detail, but not to that extent. I think the key here is to use as many resources as possible and don't waste time memorizing what the standard deduction is, etc.

I also got killed on tax court questions. I never got tested with that in college and have to memorize it now. I am here with you though and plan on taking it 9/10.

I also have been passing based on cramming. Not sure who said “you shouldn't or cant pass based on cramming” because thats not true.

AUD-77 (passed in 22 days)
BEC-79
FAR-78 (passed in 19 days)
REG- 68 (testing on 9/10)

[pcunniff]

@lamis – contracts are testable for sure. The key is to understand when they need to be in writing. Memorize MY LEGS

marriage, one year test, land, executor, goods over 500, and surety related.

Otherwise the key is to note that contracts don't need to be in writing to be valid. In terms of “assignment of contracts” what are you looking for? I wouldn't stress over that. If anything, youll get one question on that.

AUD-77 (passed in 22 days)
BEC-79
FAR-78 (passed in 19 days)
REG- 68 (testing on 9/10)

[pcunniff]

@Lamis, thanks for the explanation. So is it only taxable on form 706 during the year of death before the xfer?

[Lamis]

@pcunnif , Thanks , I'll review the contracts again.
In regards to ur question: On form 706 Estate tax return, the estate will be taxed once before the transfer (before the estate ends) , all what the estate owns while he was alive will be taxed on FMV including (income in respect of a decedent, insurance policy) , also there's some allowable expenses will be decutible only on the estate tax return Form 706 like funeral expenses & his debts.
While the annual income estate tax return, the beneficiaries who will be taxed on the DNI not the estate, the estate will get a deduction up to the DNI(excluding tax-exempt interest income) , the beneficiaries will be taxed annually while the estate is in existence.
I hope this helps

[rwglapalma]

@pcuniff which cram course do you use? Or what is your strategy? REG is killing me and I'd love to just get the minimum amount of info I need to know in order to get a 75

[pcunniff]

to be honest, my crash course is MCQ all day….

I listen to lectures in the car. Do a few sims here and there.

On areas i struggle – i do it first thing in the morning for a fresh brain.

Only way I have been able to pass..

[rwglapalma]

@pcunniff okay thank you, yeah I need to get an audio for my commute

[Chrex]

I have a really hard time on simulations. Does anyone here use the Authoritative Literature to help complete them?

[pcunniff]

just listen to your lectures on your commute. No need to spend more $$

Does anyone know the diff between executor and grantor of an estate or trust?

[CPATY]

@pcunniff I was confused as to what a grantor trust was; The key thing I tired to remember was that a Grantor in a Grantor trust retains control over the trust's assets. The Grantor is also the person who established the trust and since that same person retained control, that is why any taxable income/deduction is reported on the Grantor's tax return. Once I memorized that, it helped me get through the questions. An executor of a trust/estate is more of a person who liquidates the assets of the trust/estate.

[pharaoh]

Come on Ninja, where do you get these from?

Which of the following expenses incurred by a C corporation are not deductible and therefore must be reported as an M-1 adjustment on the corporate income tax return?

A.$1,000 of in-house lobbying expense

B.$3,000 paid to a professional lobbyist to lobby Congress

C.$500 local lobbying expenses

D.$5,000 travel expense incurred by a professional lobbyist to lobby Congress

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

[Author]

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