[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]

Corporate Tax BLITZ: https://www.another71.com/ninja-blitz/

[Kenada]

Hello Qlad,

There are three main categories of income: active income, passive income and portfolio income. Passive income does not include earnings from wages or active business participation, nor does it include income from dividends, interest or capital gains. For tax purposes, it is important to note that losses in passive income generally cannot offset active or portfolio income.

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

[Kenada]

Hello Qlad,

There are three main categories of income: active income, passive income and portfolio income. Passive income does not include earnings from wages or active business participation, nor does it include income from dividends, interest or capital gains. For tax purposes, it is important to note that losses in passive income generally cannot offset active or portfolio income.

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

[Qlad]

@ insiyah…thanks for reply…i know the general thing…just getting confused with specific ones…i will write a question when i find one….

Another question…is there a change in the amount that is exempt for education expenses reimbursed by employer in 2013?

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@ insiyah…thanks for reply…i know the general thing…just getting confused with specific ones…i will write a question when i find one….

Another question…is there a change in the amount that is exempt for education expenses reimbursed by employer in 2013?

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

Exam on Friday afternoon.

[Anonymous]

Exam on Friday afternoon.

[Kenada]

Yes sure Qlad if you see a question lets do it together 🙂

For Education Expenses no i didn't see a change for that. I thought as long as the expense is remibursed by the employee and its related to your job, you don't have to include it as income/expense.

The time you will have those educations expenses is when they were not reimbursed and so its 2% of your AGI limit

Duncan – best of luck on your exam on Friday.. Do let us know how it went 🙂

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

[Kenada]

Yes sure Qlad if you see a question lets do it together 🙂

For Education Expenses no i didn't see a change for that. I thought as long as the expense is remibursed by the employee and its related to your job, you don't have to include it as income/expense.

The time you will have those educations expenses is when they were not reimbursed and so its 2% of your AGI limit

Duncan – best of luck on your exam on Friday.. Do let us know how it went 🙂

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

[OCDisME]

@insiyah24 regarding your question about #66 and the partner's loss in the liquidating distribution. I think gottapassb4b4 was right in his statement about them being “hot assets”.

I have this in my review book, pertaining to complete withdrawal (liquidating distributions):

“The partner recognizes loss if only money, unrealized receivables, or inventory are received and if the basis of the assets received is less than the partner's adjusted basis in the partnership.” I don't see anything about inventory being valued at FMV for a liquidation.

So, by doing the calculation…the partner started with a basis of 25,000 less the 11,000 in cash received brings him to 14,000. Since this is a liquidating distribution, we have to zero out the basis. But we can't assign the 14,000 to inventory that has a basis of 5,000; so we must recognize a loss on the inventory of 9,000.

I'm glad you posted this question because I got it wrong the first time! I had to go back into my notes and book to figure it out!

Becker Online - IL Candidate

FAR: 85
AUD: 85
BEC: 78
REG: 90

[OCDisME]

@insiyah24 regarding your question about #66 and the partner's loss in the liquidating distribution. I think gottapassb4b4 was right in his statement about them being “hot assets”.

I have this in my review book, pertaining to complete withdrawal (liquidating distributions):

“The partner recognizes loss if only money, unrealized receivables, or inventory are received and if the basis of the assets received is less than the partner's adjusted basis in the partnership.” I don't see anything about inventory being valued at FMV for a liquidation.

So, by doing the calculation…the partner started with a basis of 25,000 less the 11,000 in cash received brings him to 14,000. Since this is a liquidating distribution, we have to zero out the basis. But we can't assign the 14,000 to inventory that has a basis of 5,000; so we must recognize a loss on the inventory of 9,000.

I'm glad you posted this question because I got it wrong the first time! I had to go back into my notes and book to figure it out!

Becker Online - IL Candidate

FAR: 85
AUD: 85
BEC: 78
REG: 90

[Kenada]

Thank you OCDisME 🙂

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

[Kenada]

Thank you OCDisME 🙂

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

[Qlad]

@ insiyah…

so if the employer reimburse….max $5250 exempt….and if not reimbursed then amount greater than 2% AGI is itemized deduction…..did i understand right?

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@ insiyah…

so if the employer reimburse….max $5250 exempt….and if not reimbursed then amount greater than 2% AGI is itemized deduction…..did i understand right?

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Author]

Replies