[jeff]

REG Resources:

Free REG Notes & Audio – https://www.another71.com/cpa-exam-study-plan

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Score Release: https://www.another71.com/cpa-exam-scores-results-release

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

does anyone have formulas that they memorized to calculate basis for c corps, s corps, and partnerships?

as well as nonliquidating distributions and liquidating distributions for c corps?

[Anonymous]

Does anyone have any suggestion on a way to figure out how the tax code actually works.I need to be more comfortable with it for the SIMS. Is there a good source of information which helps you more effectively navigate it.

[Anonymous]

Does anyone have any suggestion on a way to figure out how the tax code actually works.I need to be more comfortable with it for the SIMS. Is there a good source of information which helps you more effectively navigate it.

[smsingla]

I am really confused about AMT now. This question is in Wiley test bank and I think the answer it shows is not the right answer according to my calculation. Please can some one tell me what answer will they pick and why?

For 2012, Robert had adjusted gross Income of $100,000 and potential itemized deduction as follows:

Medical Expenses (before percentage limitations) $12,000

State Income Taxes 4,000

Real estate Taxes 3,500

Qualified housing and residence mortgage interest 10,000

Home equity mortgage interest (used to consolidate

personal debts) 4,500

Charitable Contributions (cash) 5,000

What are Robert's itemized deductions that are allowable for alternative minimum tax purposes?

A. 21,500

B. 17,000

C, 25,500

D 19,500

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[smsingla]

I am really confused about AMT now. This question is in Wiley test bank and I think the answer it shows is not the right answer according to my calculation. Please can some one tell me what answer will they pick and why?

For 2012, Robert had adjusted gross Income of $100,000 and potential itemized deduction as follows:

Medical Expenses (before percentage limitations) $12,000

State Income Taxes 4,000

Real estate Taxes 3,500

Qualified housing and residence mortgage interest 10,000

Home equity mortgage interest (used to consolidate

personal debts) 4,500

Charitable Contributions (cash) 5,000

What are Robert's itemized deductions that are allowable for alternative minimum tax purposes?

A. 21,500

B. 17,000

C, 25,500

D 19,500

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[Anonymous]

@smsingla

The answer is B

1) We know that for AMT purposes, Medical Expenses deductible are limited to the amount in excess of 10% of AGI, therefore the allowable deduction is 12000 – (100 000 * 0.1) = 2000

2) For AMT, we only deduct only the interest incurred for qualified housing and residence mortgage whereas for regular tax purposes, we deduct both the interest on qualified housing mortgage and the interest on home equity loan. $10 000

3) Charitable contributions are deductible both for regular tax and AMT purpose. $5000

We have as total deduction for AMT ( 2 000 + 10 000 + 5 000 ) = 17000

Hope it helps you.

[Anonymous]

@smsingla

The answer is B

1) We know that for AMT purposes, Medical Expenses deductible are limited to the amount in excess of 10% of AGI, therefore the allowable deduction is 12000 – (100 000 * 0.1) = 2000

2) For AMT, we only deduct only the interest incurred for qualified housing and residence mortgage whereas for regular tax purposes, we deduct both the interest on qualified housing mortgage and the interest on home equity loan. $10 000

3) Charitable contributions are deductible both for regular tax and AMT purpose. $5000

We have as total deduction for AMT ( 2 000 + 10 000 + 5 000 ) = 17000

Hope it helps you.

[Mehwish]

Hey Guys!

I was reading the ninja notes, and also Wiley book. Regarding partnerships, Schdeule K, Ninja led a whole bunch of items not deductible on schdedule K and Items not counted as income on Schedule K.

Not deductible- Foreign taxes paid, investment interest income, 179 expense, chartiable contr.

Not counted on income- Passive income, portfolio income, 1231 G/L

Wiley, on Schdeule K, has all those items as deductible and has other ones listed as income.

Can anyone clarify?

Thanks.

[Mehwish]

Hey Guys!

I was reading the ninja notes, and also Wiley book. Regarding partnerships, Schdeule K, Ninja led a whole bunch of items not deductible on schdedule K and Items not counted as income on Schedule K.

Not deductible- Foreign taxes paid, investment interest income, 179 expense, chartiable contr.

Not counted on income- Passive income, portfolio income, 1231 G/L

Wiley, on Schdeule K, has all those items as deductible and has other ones listed as income.

Can anyone clarify?

Thanks.

[Anonymous]

@Mehwish

I am also confused about that. I know that those items cited would not figure on the partnership information return form 1065, however, they will definitely appear on schedules K and K-1.

[Anonymous]

@Mehwish

I am also confused about that. I know that those items cited would not figure on the partnership information return form 1065, however, they will definitely appear on schedules K and K-1.

[smsingla]

@ericnkem, thanks for ur reply. ur answer is right

But I have not seen charitable contribution as deduction for AMT in Wiley book or notes.

Mnemonics for ATM adjustment in Wiley is SIMPLE as PIE where Standard deduction, Interest on home equity loans, Medical expenses subject to 10% of AGI, Personal exemptions, Local and state tax deductions, Employee and investment expenses subject to 2% of AGI rule. And preferences are PIE: Private activity bonds interest, Incentive stock options, Excess depreciation.

So that's why I am confused

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[smsingla]

@ericnkem, thanks for ur reply. ur answer is right

But I have not seen charitable contribution as deduction for AMT in Wiley book or notes.

Mnemonics for ATM adjustment in Wiley is SIMPLE as PIE where Standard deduction, Interest on home equity loans, Medical expenses subject to 10% of AGI, Personal exemptions, Local and state tax deductions, Employee and investment expenses subject to 2% of AGI rule. And preferences are PIE: Private activity bonds interest, Incentive stock options, Excess depreciation.

So that's why I am confused

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[Anonymous]

@smsingla

The mnemonic SIMPLE is added back to determine the AMTI. For AMT purposes, we add back all items that were deducted for regular tax purpose but not deductible for AMT determination. Charitable Contribution is not an add back for AMT, hence its nonoccurence in the mnemonic.

In the PIE mnemonic, you mentioned Incentive stock option. I believe ISO is an adjustment. you may want to double check on that.

[Anonymous]

@smsingla

The mnemonic SIMPLE is added back to determine the AMTI. For AMT purposes, we add back all items that were deducted for regular tax purpose but not deductible for AMT determination. Charitable Contribution is not an add back for AMT, hence its nonoccurence in the mnemonic.

In the PIE mnemonic, you mentioned Incentive stock option. I believe ISO is an adjustment. you may want to double check on that.

[Author]

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