[jeff]

REG Resources:

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

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

[smsingla]

That's what I chose, but Gleim is saying D. I think its totally wrong. because section 1231 gains and losses are pass through items.

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

[smsingla]

That's what I chose, but Gleim is saying D. I think its totally wrong. because section 1231 gains and losses are pass through items.

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

[smsingla]

For 2012, Val and Pat White, both age 30, filed a joint return. Val earned $45,000 in wages and was covered by his employer’s qualified pension plan. Pat was unemployed and received $6,000 in alimony payments for the first 4 months of the year before remarrying. The couple had no other income. Each contributed $5,000 to an IRA account. The allowable IRA deduction on their 2012 joint tax return is

A. $0

B. $5,000

C. $10,000

D. $5,250

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

[smsingla]

For 2012, Val and Pat White, both age 30, filed a joint return. Val earned $45,000 in wages and was covered by his employer’s qualified pension plan. Pat was unemployed and received $6,000 in alimony payments for the first 4 months of the year before remarrying. The couple had no other income. Each contributed $5,000 to an IRA account. The allowable IRA deduction on their 2012 joint tax return is

A. $0

B. $5,000

C. $10,000

D. $5,250

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

[Future_FLCPA]

From CPAExcel –

“The separately stated items are composed of: charitable contributions; dividends; short-term capital gains and losses; long-term capital gains and losses; Code Section 1231 gains and losses; income, gains, losses, deductions and credits specially allocated under the partnership agreement; nonbusiness production of income expenses; income, gains and losses from the sale of unrealized receivables and appreciated inventory; bad debt, prior taxes and delinquency amounts recovered; taxes of foreign nations and U.S. possessions eligible for the foreign tax credit; intangible drilling and development expenses; mining exploration expenses; and soil and water conservation expenses.”

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Future_FLCPA]

From CPAExcel –

“The separately stated items are composed of: charitable contributions; dividends; short-term capital gains and losses; long-term capital gains and losses; Code Section 1231 gains and losses; income, gains, losses, deductions and credits specially allocated under the partnership agreement; nonbusiness production of income expenses; income, gains and losses from the sale of unrealized receivables and appreciated inventory; bad debt, prior taxes and delinquency amounts recovered; taxes of foreign nations and U.S. possessions eligible for the foreign tax credit; intangible drilling and development expenses; mining exploration expenses; and soil and water conservation expenses.”

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[smsingla]

@Future

But this is how Gleim is explaining

Answer (D) is correct.

Any partnership gains and losses under Sec. 1231 are netted at the partnership level. Net gain will be treated as long-term capital gain, and any net loss will be treated as ordinary loss and consolidated with the partnership’s other taxable income.

Dont you think they are wrong?

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

[smsingla]

@Future

But this is how Gleim is explaining

Answer (D) is correct.

Any partnership gains and losses under Sec. 1231 are netted at the partnership level. Net gain will be treated as long-term capital gain, and any net loss will be treated as ordinary loss and consolidated with the partnership’s other taxable income.

Dont you think they are wrong?

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

[Future_FLCPA]

I think the answer is C: 10,000.

Each person is limited to 5,500.

However, since Val was part of a qualified pension plan, the contributions are subject to phaseout if AGI exceeds a certain amount. In this case, it does not so Val may deduct the full amount.

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Future_FLCPA]

I think the answer is C: 10,000.

Each person is limited to 5,500.

However, since Val was part of a qualified pension plan, the contributions are subject to phaseout if AGI exceeds a certain amount. In this case, it does not so Val may deduct the full amount.

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Future_FLCPA]

CPAExcel says this “Recapture computation for Partnerships and S Corporations is the same as for individuals.”

With that being said, a P'Ship will gather all of its section 1231 gains and losses and net them together. So once this is complete, does it pass through to Partner as a SSI?

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Future_FLCPA]

CPAExcel says this “Recapture computation for Partnerships and S Corporations is the same as for individuals.”

With that being said, a P'Ship will gather all of its section 1231 gains and losses and net them together. So once this is complete, does it pass through to Partner as a SSI?

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[smsingla]

@ Future, answer C is right. I forgot about the phase out and thought if you are covered by employer’s qualified pension plan 😛

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

[smsingla]

@ Future, answer C is right. I forgot about the phase out and thought if you are covered by employer’s qualified pension plan 😛

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

[melnp]

Can someone please confirm the section 179 expenses?

What is the max. deduction and max.total equipment purchased?

Thanks.

[Author]

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