[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

[Anonymous]

Another question…. does anyone know how to access the Reuters IRC. I used up my free access and they have a research function similar to AICPA.

[Anonymous]

Another question…. does anyone know how to access the Reuters IRC. I used up my free access and they have a research function similar to AICPA.

[Anonymous]

Recapture is when the spouse can no longer make the full payments (the payments decline in the second and third year). Meaning when you pay alimony that is a deduction for AGI, but since you have been making less pmts you must recapture the amounts as income.

The spouse now will need to report that money as income instead of deduction. Recapture for the 2nd year is for amounts beyond the $15,000. You work your answer from current year backwards.

I hope someone chips in.

[Anonymous]

Recapture is when the spouse can no longer make the full payments (the payments decline in the second and third year). Meaning when you pay alimony that is a deduction for AGI, but since you have been making less pmts you must recapture the amounts as income.

The spouse now will need to report that money as income instead of deduction. Recapture for the 2nd year is for amounts beyond the $15,000. You work your answer from current year backwards.

I hope someone chips in.

[Kenada]

This occurs if there is a SHARP decline in the second or third years compared to Y1.

Rule 1: – Recapture happens if your second year is more than 15,000 than what is paid in your third year.

Rule 2: – Recapture happens if your first year amount exceed by 15,000 if you average Y2 and Y3.

E.g Alimony paid Y1 50,000 but Y2 and Y3 is Zero. You take 50,000-15,000 and 35,000 will be recaptured in Y2.

E.g Alimony paid Y1 50,000. Y2 is 20,000 and Y3 is Zero.

Recapture for Y2 is 20,000-15,000 = 5,000.00. (Rule 1)

Recapture for Y3 is 50,000 – (15,000+7,500) = 27,500 (Rule 2)

Remember Rule 2 is is taking the Avg of Y2 and Y3 which in this case is 15,000 (20,000-5,000) Y2 plus Zero = 15,000

Y1 will be 17,500

Y2 will be 15,000

Y3 will be 32,500 (5,000 plus 27,500)

Total = 70,000

I hope this makes sense

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

[Kenada]

This occurs if there is a SHARP decline in the second or third years compared to Y1.

Rule 1: – Recapture happens if your second year is more than 15,000 than what is paid in your third year.

Rule 2: – Recapture happens if your first year amount exceed by 15,000 if you average Y2 and Y3.

E.g Alimony paid Y1 50,000 but Y2 and Y3 is Zero. You take 50,000-15,000 and 35,000 will be recaptured in Y2.

E.g Alimony paid Y1 50,000. Y2 is 20,000 and Y3 is Zero.

Recapture for Y2 is 20,000-15,000 = 5,000.00. (Rule 1)

Recapture for Y3 is 50,000 – (15,000+7,500) = 27,500 (Rule 2)

Remember Rule 2 is is taking the Avg of Y2 and Y3 which in this case is 15,000 (20,000-5,000) Y2 plus Zero = 15,000

Y1 will be 17,500

Y2 will be 15,000

Y3 will be 32,500 (5,000 plus 27,500)

Total = 70,000

I hope this makes sense

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

[Kenada]

This is the only questions I found that maybe you can try if you have not seen it before:-

Bob and Sue S were divorced in 2010. Under the terms of their divorcee decree, bob paid alimony to Sue at the rate of 50,000 in 2010, 20,000 in 2011 and nothing in 2012. What amount of the alimony recapture must be included in Bob's gross income for 2012?

a 0

b 23,283

c 30,000

d 32,500

If anyone else has a MC they can share on this topic that would be great. I know this is not heavily tested on the exam but still good to know.

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

[Kenada]

This is the only questions I found that maybe you can try if you have not seen it before:-

Bob and Sue S were divorced in 2010. Under the terms of their divorcee decree, bob paid alimony to Sue at the rate of 50,000 in 2010, 20,000 in 2011 and nothing in 2012. What amount of the alimony recapture must be included in Bob's gross income for 2012?

a 0

b 23,283

c 30,000

d 32,500

If anyone else has a MC they can share on this topic that would be great. I know this is not heavily tested on the exam but still good to know.

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

[Anonymous]

Great – thanks!

[Anonymous]

Great – thanks!

[Anonymous]

2010:

Alimony $20,000

Less: $15,000

Recap: $,5000

2009:

Alimony $50,000

Less: $15,000

=$35,000

****Less:$7,500

27,500

****(20000*5000+0)/2= $7,500

Total amount recaptured for 09+10 = $27,500+5000= $32,500

I know the result is called recaptured amount but what is the $15,000 (is it correct to call it the limit?)

[Anonymous]

2010:

Alimony $20,000

Less: $15,000

Recap: $,5000

2009:

Alimony $50,000

Less: $15,000

=$35,000

****Less:$7,500

27,500

****(20000*5000+0)/2= $7,500

Total amount recaptured for 09+10 = $27,500+5000= $32,500

I know the result is called recaptured amount but what is the $15,000 (is it correct to call it the limit?)

[Anonymous]

Individual: Realized Amount, Recognized Amount and Base of asset:

Realized Amount=

+Cash received/like kind not same class (bike)

+FMV of asset received

+Net debt (Debt given up – Debt Assumed)

– Selling Expenses

=Realized Amount

-Adj. Base

=Realized Gain

Gain is recognized/taxable to the extent of Boot.

Realized Gain – “Recognized Gain/Taxable amount” = Base for taxpayer

[Anonymous]

Individual: Realized Amount, Recognized Amount and Base of asset:

Realized Amount=

+Cash received/like kind not same class (bike)

+FMV of asset received

+Net debt (Debt given up – Debt Assumed)

– Selling Expenses

=Realized Amount

-Adj. Base

=Realized Gain

Gain is recognized/taxable to the extent of Boot.

Realized Gain – “Recognized Gain/Taxable amount” = Base for taxpayer

[Anonymous]

Hey i had a general question and was wondering if anybody could help me out with it. I know for the homeowners exclusion you are able to exclude $250,000 if filing single or $500,000 if married filing joint. But does anything happen to the gain if you were to rent part of the house like the basement and it was depreciated? Thanks!

[Author]

Replies