[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

[Szwagier1555]

Hi everyone

I just came back from the REG exam. I have mixed fillings 🙂 The first two testlets were ok. The third one was difficult and the simulations were semi-difficult

FAR – 10/07/13 – 75!

REG – 11/30/13 – waiting for the score

AUD – 01/14/14

BEC – 02/24/14

FAR - 75!
REG - 73, 75!
AUD - 58, 62, took exam at 02/12/2015
BEC - 50, 58

Illinois

[Szwagier1555]

Hi everyone

I just came back from the REG exam. I have mixed fillings 🙂 The first two testlets were ok. The third one was difficult and the simulations were semi-difficult

FAR – 10/07/13 – 75!

REG – 11/30/13 – waiting for the score

AUD – 01/14/14

BEC – 02/24/14

FAR - 75!
REG - 73, 75!
AUD - 58, 62, took exam at 02/12/2015
BEC - 50, 58

Illinois

[ywkam]

Hey guys,

I am a little bit confuse: Alternative Valuation date for estate can only be use if it lower total estate value right?

On Wiley review book:

Fred Zorn died on June 5, 2011. bequeathing his entire 6 mil estate to his sister. The alternative value date was selected by the executor. Fred estate has 2000 share of listed stock for $380,000. The stock was distributed to his sister Ida nice months after Fred death.

FMV of his stock were

at date of death $400,000

6 months after Fred death 450,000

9 Month after his death 480,000

The answer is $450,000, not $400,000? why?

CPA-
FAR -- PASSED!!
REG -- PASSED!!
BEC -- PASSED!!
AUD -- PASSED!!

[ywkam]

Hey guys,

I am a little bit confuse: Alternative Valuation date for estate can only be use if it lower total estate value right?

On Wiley review book:

Fred Zorn died on June 5, 2011. bequeathing his entire 6 mil estate to his sister. The alternative value date was selected by the executor. Fred estate has 2000 share of listed stock for $380,000. The stock was distributed to his sister Ida nice months after Fred death.

FMV of his stock were

at date of death $400,000

6 months after Fred death 450,000

9 Month after his death 480,000

The answer is $450,000, not $400,000? why?

CPA-
FAR -- PASSED!!
REG -- PASSED!!
BEC -- PASSED!!
AUD -- PASSED!!

[mags603]

sorry, no clue about the alternative date.

good luck on your test!

just took mine and it was beyond uncomfortable. i would have been better off not studying partying the night before and just winging it. i studied via becker on line, did over 3000 questions worked the sims..and ahhhh…..

everything completely confused me on the exam. i am sure i read into some questions too much and others not enough. 2nd guessed myself, triple guessed myself and then would pick a completely different answer.

owww.

[mags603]

sorry, no clue about the alternative date.

good luck on your test!

just took mine and it was beyond uncomfortable. i would have been better off not studying partying the night before and just winging it. i studied via becker on line, did over 3000 questions worked the sims..and ahhhh…..

everything completely confused me on the exam. i am sure i read into some questions too much and others not enough. 2nd guessed myself, triple guessed myself and then would pick a completely different answer.

owww.

[Anonymous]

@ywkam You can value the stock beyond the FMV of alternative date. Thats the maximum you can value the stock if the alternative date is selected. The $400k is for when the alternative is not selected. You have 3 choices they way I think about.

1. Select Alternative date – transfer happens 6 months later $480k

2. Select Alternative date – transfer happens 3 months before 6 month deadline, then FMV for stock is that date

3. Don't select alternate date then you inherit the base of the decedent.

4. Select Alt. date – transfer takes place 9 months later then you max FMV is the 6 months date (cannot be higher or lower)

I need to double if the fmv is lower whats the best solution???

[Anonymous]

@ywkam You can value the stock beyond the FMV of alternative date. Thats the maximum you can value the stock if the alternative date is selected. The $400k is for when the alternative is not selected. You have 3 choices they way I think about.

1. Select Alternative date – transfer happens 6 months later $480k

2. Select Alternative date – transfer happens 3 months before 6 month deadline, then FMV for stock is that date

3. Don't select alternate date then you inherit the base of the decedent.

4. Select Alt. date – transfer takes place 9 months later then you max FMV is the 6 months date (cannot be higher or lower)

I need to double if the fmv is lower whats the best solution???

[ywkam]

@Eliabraham Thank you for helping out.

I look up online and found this

https://www.legalmatch.com/law-library/article/alternative-valuation-method-for-gross-estate.html

“Under What Condition Is The Alternative Valuation Method Not Available?

The executor can only elect to use the alternative valuation method if it will lower both:

1. The value of the gross estate; and

2. The sum of the estate tax and generation-skipping tax after taking the application of all allowable credits against these taxes.

Estates that owe no federal estate tax or no generation skipping tax may not use the alternative valuation method.”

I am confuse….

CPA-
FAR -- PASSED!!
REG -- PASSED!!
BEC -- PASSED!!
AUD -- PASSED!!

[ywkam]

@Eliabraham Thank you for helping out.

I look up online and found this

https://www.legalmatch.com/law-library/article/alternative-valuation-method-for-gross-estate.html

“Under What Condition Is The Alternative Valuation Method Not Available?

The executor can only elect to use the alternative valuation method if it will lower both:

1. The value of the gross estate; and

2. The sum of the estate tax and generation-skipping tax after taking the application of all allowable credits against these taxes.

Estates that owe no federal estate tax or no generation skipping tax may not use the alternative valuation method.”

I am confuse….

CPA-
FAR -- PASSED!!
REG -- PASSED!!
BEC -- PASSED!!
AUD -- PASSED!!

[Anonymous]

Don't confuse yourself stick to the basic rules. What the IRS is doing trying to prevent people from increasing their basis to such a point that they can't tax you for gains. The highest base will be FMV at death or 6 month valuation. But If you are clever and elect the alternative date. If stock is distributed in month 4 then your FMV is the month 4 date. Even if FMV is higher than FMV at death or 6 month valuation.

[Anonymous]

Don't confuse yourself stick to the basic rules. What the IRS is doing trying to prevent people from increasing their basis to such a point that they can't tax you for gains. The highest base will be FMV at death or 6 month valuation. But If you are clever and elect the alternative date. If stock is distributed in month 4 then your FMV is the month 4 date. Even if FMV is higher than FMV at death or 6 month valuation.

[Anonymous]

Also I don't think the AICPA will go into some of the exceptions. If they do we are screwed, because I have enough stuff swirling in my brain to remember the IRC extremes.

[Anonymous]

Also I don't think the AICPA will go into some of the exceptions. If they do we are screwed, because I have enough stuff swirling in my brain to remember the IRC extremes.

[ywkam]

Ya, hopefully. thanks Eliabraham

CPA-
FAR -- PASSED!!
REG -- PASSED!!
BEC -- PASSED!!
AUD -- PASSED!!

[Author]

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