[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]

Oh my smfrentz! wow cant believe your grades – all you need now is to continue this one-pt trend and you'll win!!

[Mehwish]

For Sec 179 Expense- The 2012 (According to Wiley) max deduction was $139,000, and is reduced dollar for dollar if property is over $570,000.

In Ninja notes, it says max deduction is $500,000, and reduction begins at $2M.

Which numbers should we know if we are taking the exam in Nov 2013?

I am having a really hard time understand IRAs and AMT regarding individual taxation. What do you guys recommend I should know from these two topics? Or any other approach to understand them?

[Mehwish]

For Sec 179 Expense- The 2012 (According to Wiley) max deduction was $139,000, and is reduced dollar for dollar if property is over $570,000.

In Ninja notes, it says max deduction is $500,000, and reduction begins at $2M.

Which numbers should we know if we are taking the exam in Nov 2013?

I am having a really hard time understand IRAs and AMT regarding individual taxation. What do you guys recommend I should know from these two topics? Or any other approach to understand them?

[Anonymous]

Can someone please explain to me how Section 1250 recapture works?

[Anonymous]

Can someone please explain to me how Section 1250 recapture works?

[Anonymous]

@determined1

The income accumulates in the trust and is paid out upon the child reaching age 21, so it is a future interest gift. This question is asking how much is excludable from being a taxable gift and the answer is zero. “Excludable” refers to the “Annual exclusion” ($14,000 in 2013).

If this was a PRESENT interest, where the child would get the income every year, Blake would get a $14,000 annual exclusion on the amount given to the child.

Since the income accumulates in the trust and the child will not receive it until 21, this is a FUTURE interest, and future interests do not qualify for the annual exclusion until the gift is actually made (when the child constructively receives the money).

[Anonymous]

@determined1

The income accumulates in the trust and is paid out upon the child reaching age 21, so it is a future interest gift. This question is asking how much is excludable from being a taxable gift and the answer is zero. “Excludable” refers to the “Annual exclusion” ($14,000 in 2013).

If this was a PRESENT interest, where the child would get the income every year, Blake would get a $14,000 annual exclusion on the amount given to the child.

Since the income accumulates in the trust and the child will not receive it until 21, this is a FUTURE interest, and future interests do not qualify for the annual exclusion until the gift is actually made (when the child constructively receives the money).

[Anonymous]

1250 Property/real held for 12 months or less, gain on sale/disposition must be recaptured as ordinary income to the extent of all depreciation (including straight line) excess depreciation.

I hope this helps. Gain and depreciation taken that should not have been taken would be the amount recaptured.

[Anonymous]

1250 Property/real held for 12 months or less, gain on sale/disposition must be recaptured as ordinary income to the extent of all depreciation (including straight line) excess depreciation.

I hope this helps. Gain and depreciation taken that should not have been taken would be the amount recaptured.

[Anonymous]

@Eliabraham, thanks!

How do you get the excess amount? Also, what do you mean gain and depreciation taken that should not have taken be recaptured?

[Anonymous]

@Eliabraham, thanks!

How do you get the excess amount? Also, what do you mean gain and depreciation taken that should not have taken be recaptured?

[Anonymous]

Step 1 of 1250: I sold a property for $100 (Orig cost $200, Acc depr $120) therefore my basis for this property is $80. The $20 gain will be classified as ordinary if I sold the property in 12 months or less. So my $20 gain will be treated as ordinary gain instead of long term capital gain. Because whole transaction took place within 12 months of purchase.

Step 2 of 1250. Access depreciation, lets say I sold my property 13 months later after acquisition. Then my property would fall under sec 1231 (Real property/assets held for more than a year long term capital gain @ 25%). But since I took straightline depreciation of $120 on this property (Would have been $140 depr if accelerated method was used). This property contains 1250 unrecaptured depreciation. The maximum tax on this property would be the 25% LTCG.

I just rambled on just know the whats makes an asset a 1250, 1231 asset and everything should fall into place.

[Anonymous]

Step 1 of 1250: I sold a property for $100 (Orig cost $200, Acc depr $120) therefore my basis for this property is $80. The $20 gain will be classified as ordinary if I sold the property in 12 months or less. So my $20 gain will be treated as ordinary gain instead of long term capital gain. Because whole transaction took place within 12 months of purchase.

Step 2 of 1250. Access depreciation, lets say I sold my property 13 months later after acquisition. Then my property would fall under sec 1231 (Real property/assets held for more than a year long term capital gain @ 25%). But since I took straightline depreciation of $120 on this property (Would have been $140 depr if accelerated method was used). This property contains 1250 unrecaptured depreciation. The maximum tax on this property would be the 25% LTCG.

I just rambled on just know the whats makes an asset a 1250, 1231 asset and everything should fall into place.

[NYCaccountant]

Checking in for REG! I've gotten through the first 150 pages of Wiley, averaging an 87 through the test bank first time through. The business law is not so bad so far, lots of rules. I'm pretty sure I'll be asking for help from time to time. @Eliabraham are you taking REG this window?

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

Checking in for REG! I've gotten through the first 150 pages of Wiley, averaging an 87 through the test bank first time through. The business law is not so bad so far, lots of rules. I'm pretty sure I'll be asking for help from time to time. @Eliabraham are you taking REG this window?

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Author]

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