[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/

[passantsalama]

@pharaoh I think it is C

[pharaoh]

It is B and here is the explanation

Generally, lobbying expenses are not deductible. However, there is a limited exception which allows a deduction for local lobbying expenses and up to $2,000 of in-house lobbying expenses.

Expenses incurred by a taxpayer engaged in the business of providing lobbying services are deductible by that taxpayer. Dues paid to a tax-exempt organization are generally not deductible to the extent they are used to fund lobbying activities.

IRC Section 162(e)

Corporations with over $10 million in assets must use Schedule M-3.

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

[pcunniff]

Are cows an expense for farming income?

[pcunniff]

@cpaty thank you

Have another question. A tax preparer is someone who prepares tax returns for income or compensation. Is a bribe or promise to pay after someone was going to prepare the return for free entitled to the title “tax preparer”?

[2017cpa]

Hello everyone,
Started studying for REG in august and taking in september. I've been having a hard time focusing on studying for the past couple days because I found out I failed AUD. Anyway I'm back at studying today (I'm using Wiley CPAExcel) I'm doing some sims and I came across MACRS depreciation problem. I understood how to apply the MACRS table but I didn't choose the right table. So I was hoping someone could explain the difference between MACRS Personalty and MACRS Realty. Is realty land and buildings and personalty everything else? Thanks for any help!

[Lamis]

@2017cpa don't give up , study again , this happens to most of us at least failed once..
okay for real property :if it's residential u use 27.5 years straight line , if nonresidential u use 37 yrs(don't forget Mid-month convention)
Personal property(machinery and equipment) use MACRS 3,5,7, etc depends on the class asset &either u use (half year convention or Mid quarter convention)

[Omar]

Does anyone know when calculating capital gains\losses on selling stocks is calculated ate the gross sale amount or net amount after commission and any related expenses? I got an entire SIM regarding stocks transaction before and after commission.

FAR: 73, 85
BEC: 79
REG: TBA
AUD: TBA

[Lamis]

@Medo_Omar where did u get this sim?

[maj1028]

@medo_omar I believe it is net of any related expenses and commission because whenever there is a sale, you always have to consider the amount realized and this would include selling expenses and commissions. I hope that makes sense

[pcunniff]

Agreed with Maj1028

@2017CPA, remember nonresidential property (think warehouse)
residential (condos/apartments)

Also remember that for mid month convention NO MATTER WHEN IT WAS placed you take a half (AKA AUG 25th you still take .5 for aug.

[Lamis]

Guys I noticed there's some areas not covered by Becker in ninja mcq especially kinds of Trusts..
I don't know what to do now
Any advice?

[Omar]

@Lamis I got that SIM in Q1 exam which I failed with 70 score

@maj1028 I thought like you too, but when I got my performance report I found out that I failed because of SIMs. That's why I asked this question, I'm trying to cover every thing before retake the exam on Sep.

Can anyone confirm?

FAR: 73, 85
BEC: 79
REG: TBA
AUD: TBA

[Lamis]

@omar I agree with maj, amount realized minus adjusted basis which net of all related expenses and selling expenses like commissions

[CPATY]

@pcunniff you got me on that one, i would think not. Simply because of the whole bribe and the definition of a tax payer… Do you know the question that was related to that?

[joonpark1212]

Question on Capital gain/loss for SCorp and Partnership.
I do not see anywhere on forms 1120S and 1056 where it inputs Capital G/L(from Schedule D or form 8949)
Does this mean all Capital G/L for SCorp and Partnership is wholly passed through to the shareholders that it will only show on schedule k-1?

I've been contemplating this for awhile. A reply would be appreciated.

[Author]

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