[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]

Thank you guys! So unrecaptured 1250 that goes on the K1 is just the regular straight line? And the amount that is recaptured as ordinary income is the excess of MACRS over straight line?

[Anonymous]

@marie22, yes if it is an accrual basis taxpayer, you add the increase in A/R to revenue

[Anonymous]

@marie22, yes if it is an accrual basis taxpayer, you add the increase in A/R to revenue

[Anonymous]

@Igotthis, so the unrecaptured 1250 depreciation is treated as 1231 gains? I am confused now!!!

[Anonymous]

@Igotthis, so the unrecaptured 1250 depreciation is treated as 1231 gains? I am confused now!!!

[Igotthis]

@amelia. Yup. Having examples will help. This is how I remember things:

Prior to 1987, real estate was using ACRS.

EX. In 1980, ACRS depreciation is 200,000 and under MACRS straight line is 150,000. So the excess depreciation is 50,000. If the property was sold with a gain of 75,000. The 50,000 would be 1250 Recapture (Ordinary income) and the 25,000 would be nonrecaptured 1250 (Long term capital gain – with a maximum of 25% tax bracket).

Does this help?

[Igotthis]

@amelia. Yup. Having examples will help. This is how I remember things:

Prior to 1987, real estate was using ACRS.

EX. In 1980, ACRS depreciation is 200,000 and under MACRS straight line is 150,000. So the excess depreciation is 50,000. If the property was sold with a gain of 75,000. The 50,000 would be 1250 Recapture (Ordinary income) and the 25,000 would be nonrecaptured 1250 (Long term capital gain – with a maximum of 25% tax bracket).

Does this help?

[jaredo155]

I am sure someone has already answered this, but I was just curious because there is a discrepency between the Ninja notes and the IRS website for the 2012 Section 179 deduction and total equipment purchases amount (the amounts tested in 2013). According to the Ninja notes it is a $139,000 deduction and $560,000 purchases, and on the IRS it is $500,000 deduction and $2,000,000 purchases. I have to assume the IRS is correct, but is that what we are tested on?

AUD - 2/2013 - Passed!
BEC - 5/2013 - Passed!
FAR - 8/2013 - Passed!
REG - 11/2013 - Passed!
"Do or do not, there is no try." - Yoda

[jaredo155]

I am sure someone has already answered this, but I was just curious because there is a discrepency between the Ninja notes and the IRS website for the 2012 Section 179 deduction and total equipment purchases amount (the amounts tested in 2013). According to the Ninja notes it is a $139,000 deduction and $560,000 purchases, and on the IRS it is $500,000 deduction and $2,000,000 purchases. I have to assume the IRS is correct, but is that what we are tested on?

AUD - 2/2013 - Passed!
BEC - 5/2013 - Passed!
FAR - 8/2013 - Passed!
REG - 11/2013 - Passed!
"Do or do not, there is no try." - Yoda

[jaredo155]

Disregard my above post I just found the conversation covering Section 179 on the prior page, sorry for not being more diligent before posting.

AUD - 2/2013 - Passed!
BEC - 5/2013 - Passed!
FAR - 8/2013 - Passed!
REG - 11/2013 - Passed!
"Do or do not, there is no try." - Yoda

[jaredo155]

Disregard my above post I just found the conversation covering Section 179 on the prior page, sorry for not being more diligent before posting.

AUD - 2/2013 - Passed!
BEC - 5/2013 - Passed!
FAR - 8/2013 - Passed!
REG - 11/2013 - Passed!
"Do or do not, there is no try." - Yoda

[Anonymous]

Guys Becker updated their software to include 2013 phase out numbers and rates. I am so confused because I am taking the exam end of November and am not sure if I should study 2012 or 2013 numbers?

[Anonymous]

Guys Becker updated their software to include 2013 phase out numbers and rates. I am so confused because I am taking the exam end of November and am not sure if I should study 2012 or 2013 numbers?

[jaredo155]

The exam taken in November 2013 will be tested on 2012 numbers, not the 2013 numbers which will be tested starting in the first window of 2014.

AUD - 2/2013 - Passed!
BEC - 5/2013 - Passed!
FAR - 8/2013 - Passed!
REG - 11/2013 - Passed!
"Do or do not, there is no try." - Yoda

[jaredo155]

The exam taken in November 2013 will be tested on 2012 numbers, not the 2013 numbers which will be tested starting in the first window of 2014.

AUD - 2/2013 - Passed!
BEC - 5/2013 - Passed!
FAR - 8/2013 - Passed!
REG - 11/2013 - Passed!
"Do or do not, there is no try." - Yoda

[Author]

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