REG Study Group July August 2017 - Page 75

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    Topic
  • #1563001
    jeff
    Keymaster

    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/

Viewing 15 replies - 1,111 through 1,125 (of 1,171 total)
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    Replies
  • #1615808
    Radez
    Participant

    Different kinds of taxation. SE tax is basically social security and medicare, right? It's like with a salary, you pay income tax on the salary, but you also pay SS and medicare which is determined as a % of earnings as well. If you're self-employed and reporting income through schedule C or F, then you'll need to pay SS and medicare on those earnings in addition to the income tax.

    With SE tax, you can deduct half of what you pay on the face of the 1040 when calculating AGI. This correlates to what an employer would be paying under different circumstances.

    Hope that answers your question.

    #1615961
    CanPassAttitude
    Participant

    Hi Ninjas. I am currently using the MCQ test bank for Wiley and consistently getting around 60-70 on my questions. I take the exam on September 8. Any thoughts on where I should be at and if I am on the right track? Also using Ninja Notes and Audio.

    Thanks

    #1615980
    In it to earn it
    Participant

    @mightymax, I was getting 60-70 on the first time through the test bank in Wiley. Started beginning of this month. Second time through I averaged an 88. Now going through a third time averaging a 96. First time through I was only doing about 300 questions per day. Second time through about 500 questions per day. Now about 700 questions per day. Going through the second time like this, you can get through the test bank in about four days. In between the rounds in the bank I take a couple days to read the book, study forms, watch videos, etc. You should have enough time to get it up there.

    #1616009
    CanPassAttitude
    Participant

    @Earnit How are you getting through that many in a day? Do you read the reasons why it is right or wrong? I feel like that amount is a little unnecessary and would eventually just end up memorizing the questions and not the knowing the material.

    #1616030
    2017cpa
    Participant

    @lamis ok thanks so much for the explanation. So its if 40% of cumulative personal assets are put into service in the last quarter then you use the mid quarter convention. This obviously has been a tough concept for me to understand lol

    #1616117
    In it to earn it
    Participant

    @mightymax, I have heard that train of thought a lot on boards that it is not good to just memorize the answer. But if you know why the answer is right, then that is all that matters, and memorizing the right answer for particular situations is actually a good thing. I do read the explanations for the right answer and also the wrong answer. I do not feel it is too much, because on test day when the nerves are high I want those answers so engrained in my neurological pathways that I am not thrown off. Of course, it is not good to just be one-dimensional so I have read the Wiley book cover to cover twice, watched all the videos, done the simulations, written two legal pads of notes, studied the tax forms and read the IRS instructions, watched you tube videos on weak areas. Pretty much ran out of methods of studying so just going through 700 a day now of Wiley and Ninja MCQ just to keep it fresh for the next three days until test time. How am I doing so much? Studying from sun up to sun down seven days a week with a break on Sunday for church and an hour here or there to either workout (while listening to Jeff's audio), eat, or to watch a television show.

    #1616256
    pharaoh
    Participant

    Tax-exempt organizations are not taxed on investment income derived from investments that are accepted as proper sources of income for a charity or trust. Which of the following types of income would be taxable income for a nonprofit?

    A.Dividends and interest

    B.Rent from a debt-financed building

    C.Royalties and capital gains

    D.Other rents not using debt financing

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

    #1616264
    Lamis
    Participant

    @pharaoh B

    #1616267
    pharaoh
    Participant

    @lamis – Yes. But why?
    this is not covered in Roger and I am wondering if it is covered in other material

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

    #1616285
    maj1028
    Participant

    IRC 512(b)(4) provides that an organization subject to IRC 511 must include in gross income from an unrelated trade or business an unrelated debt-financed income.

    For each debt-financed property, the “unrelated debt-financed income” is that amount which is the same percentage (not over 100%) of the total gross income derived during a taxable year from such property as the average acquisition indebtedness regarding the property is of the average adjusted basis of the property. This percentage is referred to in Reg. 1.514(a)–1(a)(1)(iii) as the “debt/basis percentage.”

    This was from irs.gov

    #1616388
    Operation_CPA
    Participant

    Does anyone have any resource / summary sheet that showcases how to calculate the different types of basis (C corporation, S corporation, Partnerships, etc.? I feel like I am getting confused & mixing things up during my MCQ and cannot seem to find a condensed summary page in the Becker text or online.

    Any help is greatly appreciated, this would really be a game changer for me.

    #1616399
    Lamis
    Participant

    @opeartion_cpa I guess the best notes u can ever get are the ones that u made it for urself
    Reread the basis and make ur own notes

    #1616400
    Operation_CPA
    Participant

    @Lamis

    I figured that (lol). After I posted I thought, “you know what, go re-read it and take notes. Come on now.” I feel like time is limited so I was looking for something quick and easy. But easy does not necessarily translate to success. Thanks!

    #1616411
    maj1028
    Participant

    C Corp & S Corp shareholder basis in stocks received on incorporation:
    Adjusted basis of contributed property
    +Gain recognized by shareholder
    -Liability assumed by corporation
    -boot received

    C Corp & S Corp basis in property received on incorporation:
    Adjusted basis of contributed property
    +Gain recognized by shareholder

    Note: corporation does not recognize any gain or loss in issuance of stock

    Changes in basis C Corp:
    Adjust basis for any stock splits and any subsequent contribution

    Basis of distributed property to a shareholder: FMV

    Changes in basis in S corp:
    Adjust basis for any subsequent contribution, share in income including tax exempt, distribution from AAA/AOA, share in losses including non-deductible expenses

    Partner's basis in transferred property:
    Adjusted basis – liabilities assumed by partnership + Partner's share in liabilities assumed by partnership

    Partner's basis in services contributed to the partnership: FMV

    Partnership's basis in property received: Adjsuted basis in the hands of the partner

    Changes in Partner's basis:
    Adjust basis for any increases or decreases in liabilities, subsequent contribution, share in income including tax exempt, distribution, share in losses including non-deductible expenses

    Note basis cannot be below zero

    I believe these are the fundamentals that you would need to be able to answer most of the questions. Please always note if the question is asking about basis in the hands of the shareholder or partner or in the hands of the entity.

    Anyone, please feel free to add anything else you remember.

    Hope this helps

    #1616436
    CanPassAttitude
    Participant

    @EarnIt Kudos for you being able to study from sun up to sun down. I currently have a full-time career so I am not afforded that luxury. I get studying done when I can, mainly after work and on weekends. Takes longer, but making progress towards passing. Good luck on REG!

Viewing 15 replies - 1,111 through 1,125 (of 1,171 total)
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