[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

[Kenada]

Ok this is how i understand AMT Individuals

The whole idea of AMT is the IRS wants to nickel and dime you out of every cent that they possible can LOL…

So have already calculated our tax due by taking all the adjustments and deductions from our Gross Income.

We now have value of what the tax due is and now need to compare it to this Alternative method the IRS has to see what your Tax due should be.

Start with

Regular taxable Income.

+ or – Adjustments and Preferences (these were all the adjustments and preferences you were allowed before to get your tax due)

AMTI before exemption

Less the Exemption they have set for AMT calculations (51,950 S or 80,750 MFJ) You can see from the exemption they give a large amount to compensate for all the adjustments and preference you had to add back above.

AMTI

* Tax rate .. i think that is 26 % or 28 %

Tentative Min Tax

Now you compare your Tentative Min Tax with your Tax Due.

Since i mentioned the IRS wants to nickel and dime you, if your tax due is less than the tentative Min tax you have to pay the additional difference plus your tax due,

If your tax due is less then your Tentative Min tax then well you can just pay the full Tax due. Can't reduce it by the negative AMT 🙂

I think Becker has their own Mnemonic to remember what those adjustments and preferences are. Rogers has its own.

Just remember it will be things like your Std deductions, State Income taxes, medical Expenses under 10% AGI, the interest on your Home Mortgage, Excess Depn, personal exemptions etc.

All these things you should be aware of as those are the items that were part of your “Adjustments” to come to AGI and also your Deductions to come to = Taxable Income.

I hope this helps 🙂

FAR 05/27/14; 786/110 - Done !

[LSNYC]

Hi all! Just a quick check in, ill be starting my studying for my third try at REG this week. Any tips would be appreciated really hoping to take REG down and be done in 2013!

A - 61, 91!!
B - 78!
F - 76!!!
R - 71, 73, 74, 69, 77!!!!

Finally done!

This is my 2nd attempt at the exam, I had two parts passed (failed many) and I stupidly quit, big mistake. Now I'm back and with a vengeance!

[LSNYC]

Hi all! Just a quick check in, ill be starting my studying for my third try at REG this week. Any tips would be appreciated really hoping to take REG down and be done in 2013!

A - 61, 91!!
B - 78!
F - 76!!!
R - 71, 73, 74, 69, 77!!!!

Finally done!

This is my 2nd attempt at the exam, I had two parts passed (failed many) and I stupidly quit, big mistake. Now I'm back and with a vengeance!

[Kenada]

Hiya LSNYC

I am in your boat. Taking REG again in Oct for the second time.

Currently I am re-doing the Wiley homework questions. As I go along the chapters I am making my Nugget notes etc.

I think my downfall last time was I didn't give business law the attention it deserved and I didn't practice Tax enough or as much as I should have.

Whats your plan of attack ? I could use some help with B/Law 🙂

FAR 05/27/14; 786/110 - Done !

[Kenada]

Hiya LSNYC

I am in your boat. Taking REG again in Oct for the second time.

Currently I am re-doing the Wiley homework questions. As I go along the chapters I am making my Nugget notes etc.

I think my downfall last time was I didn't give business law the attention it deserved and I didn't practice Tax enough or as much as I should have.

Whats your plan of attack ? I could use some help with B/Law 🙂

FAR 05/27/14; 786/110 - Done !

[Anonymous]

If you notice the answer c: says that if Mary had went into assisted living more than half a year before year end Mindy could have filed head of household. But the book says the taxpayer has to maintain the principal residence for the full year. Is that just an error in the answer or am I missing something ?

The question was:

In Year 4, after Mindy's three children have grown and moved out of the house, Mindy (unmarried) moved her mother, Mary, into an assisted living facility for which Mindy pays 75% of the cost. Mindy had not previously lived with Mary, and Mary paid for her own living expenses while she lived in her own home. What filing status should Mindy use for Year 4, assuming Mary moved into the assisted living facility on August 1, Year 4?

a. Single.

b. Married filing jointly.

c. Head of household.

d. Surviving spouse.

Explanation

Choice “a” is correct. Mindy should file using the single status. She does not qualify for more favorable filing status.

Choice “b” is incorrect. Mindy is not married.

Choice “c” is incorrect. Mindy does not qualify for head of household status. Had Mary moved into the assisted living home

more than half a year before the taxable year-end, Mindy would have been eligible for head of household status. Mindy did not provide more than half of Mary's support and for Year 4 is ineligible for head of household status.

Choice “d” is incorrect. Mindy has not had a spouse die in the past two years.

[Anonymous]

If you notice the answer c: says that if Mary had went into assisted living more than half a year before year end Mindy could have filed head of household. But the book says the taxpayer has to maintain the principal residence for the full year. Is that just an error in the answer or am I missing something ?

The question was:

In Year 4, after Mindy's three children have grown and moved out of the house, Mindy (unmarried) moved her mother, Mary, into an assisted living facility for which Mindy pays 75% of the cost. Mindy had not previously lived with Mary, and Mary paid for her own living expenses while she lived in her own home. What filing status should Mindy use for Year 4, assuming Mary moved into the assisted living facility on August 1, Year 4?

a. Single.

b. Married filing jointly.

c. Head of household.

d. Surviving spouse.

Explanation

Choice “a” is correct. Mindy should file using the single status. She does not qualify for more favorable filing status.

Choice “b” is incorrect. Mindy is not married.

Choice “c” is incorrect. Mindy does not qualify for head of household status. Had Mary moved into the assisted living home

more than half a year before the taxable year-end, Mindy would have been eligible for head of household status. Mindy did not provide more than half of Mary's support and for Year 4 is ineligible for head of household status.

Choice “d” is incorrect. Mindy has not had a spouse die in the past two years.

[Kenada]

Hello clittlefield,

This is my understanding why the answer is a.

There are certain criteria's that need to be met

1. Citizenship

2. Income the dependent has is less than 3,900 (2013)

3. Support – Tax payer must furnish over one half support.

4. Relation – Dependent must live either with Tax payer for the year or be closer than a cousin.

In regards to Mindy – Her mother Mary was moved to a home on Aug 1st. That is less than half of years worth of support.

It was after the mother moved to the retirement home did Mindy support her mother. Before that the mother supported herself. So in Y 4 Mindy can't claim her mother as a dependent. The following year she should be able to claim her mother as a dependent

Mindy's children had moved out of the house therefore they can't be her dependents since its being implied the children are supporting themselves.

So Mindy will file as Single.

FAR 05/27/14; 786/110 - Done !

[Kenada]

Hello clittlefield,

This is my understanding why the answer is a.

There are certain criteria's that need to be met

1. Citizenship

2. Income the dependent has is less than 3,900 (2013)

3. Support – Tax payer must furnish over one half support.

4. Relation – Dependent must live either with Tax payer for the year or be closer than a cousin.

In regards to Mindy – Her mother Mary was moved to a home on Aug 1st. That is less than half of years worth of support.

It was after the mother moved to the retirement home did Mindy support her mother. Before that the mother supported herself. So in Y 4 Mindy can't claim her mother as a dependent. The following year she should be able to claim her mother as a dependent

Mindy's children had moved out of the house therefore they can't be her dependents since its being implied the children are supporting themselves.

So Mindy will file as Single.

FAR 05/27/14; 786/110 - Done !

[Anonymous]

Okay. That makes sense. The part that was throwing me was the part where they explained C: wasn't the correct answer and said that if she had moved more than HALF a year before year end that she would have been able to claim head of household but the book says for the entire year. It's probably nothing I need to worry about but I know I'll probably get a similar question with a different move in date that is before July and I won't know how to answer.

[Anonymous]

Okay. That makes sense. The part that was throwing me was the part where they explained C: wasn't the correct answer and said that if she had moved more than HALF a year before year end that she would have been able to claim head of household but the book says for the entire year. It's probably nothing I need to worry about but I know I'll probably get a similar question with a different move in date that is before July and I won't know how to answer.

[Anonymous]

Thanks Insiyah24! I forgot to say that earlier!

[Anonymous]

Thanks Insiyah24! I forgot to say that earlier!

[Vienna]

clittlefield: I assume you're using Becker? The book is slightly confusing when it comes to Head of Household and a dependent parent. The taxpayer is required to maintain a home that was the principal residence for the entire year. In other words, the taxpayer paid more than half the cost of keeping up a home for the year. In addition, the qualifying dependent lived with the taxpayer in the home for more than half the year. An exception applies if the qualifying person is a dependent parent, he or she does not have to live with the taxpayer.

Clear as mud?

[Vienna]

clittlefield: I assume you're using Becker? The book is slightly confusing when it comes to Head of Household and a dependent parent. The taxpayer is required to maintain a home that was the principal residence for the entire year. In other words, the taxpayer paid more than half the cost of keeping up a home for the year. In addition, the qualifying dependent lived with the taxpayer in the home for more than half the year. An exception applies if the qualifying person is a dependent parent, he or she does not have to live with the taxpayer.

Clear as mud?

[Author]

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