[jeff]

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[Qlad]

I have question about MACRS table….when a residential property is bought….we take 27.5 years as depreciation….right?

….in the mid month table…there is no 27.5 yrs, so we look at the 28th year or 27th year???…and how do we confirm mid month?….say if the building is bought in april…we look at 3rd? month …or if it bought in september, then we look at the 8 th month ???

pls help me with this one…i know i got this totally wrong..

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

[Kenada]

I thought the Mid Month Convention was lets say you both an asset on Oct 5th, You would take Depreciation as half of oct and then Nov, Dec for the first year.

Mid Year is when you bought the asset lets say in May 2013, then you take half year Depreciation for the first year

Mid Quarter is when you buy the assets in Sept then You take first year depn for just the quarter.

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

[Kenada]

I thought the Mid Month Convention was lets say you both an asset on Oct 5th, You would take Depreciation as half of oct and then Nov, Dec for the first year.

Mid Year is when you bought the asset lets say in May 2013, then you take half year Depreciation for the first year

Mid Quarter is when you buy the assets in Sept then You take first year depn for just the quarter.

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

[OCDisME]

@Qlad, there is a 27.5 year mid-month straight line convention MACRS table provided in the “Information” tab of Becker 2013 R3 Simulation 1, #4.

So, I would assume that if you need it on the exam, it will definitely be provided for you. And you use the month the asset was placed into service as your starting point from the table. For example, in the simulation I referred to…there is a residential real estate property placed into service in April, and the solution says to use the 4th month 27.5 year half-month % for calculation.

Becker Online - IL Candidate

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

[OCDisME]

@Qlad, there is a 27.5 year mid-month straight line convention MACRS table provided in the “Information” tab of Becker 2013 R3 Simulation 1, #4.

So, I would assume that if you need it on the exam, it will definitely be provided for you. And you use the month the asset was placed into service as your starting point from the table. For example, in the simulation I referred to…there is a residential real estate property placed into service in April, and the solution says to use the 4th month 27.5 year half-month % for calculation.

Becker Online - IL Candidate

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

[Qlad]

@ ocdisme….ok i just went in the sim to have a look…and got a bit…i will do the sim and then ask if any query…thanks..

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

[Qlad]

@ ocdisme….ok i just went in the sim to have a look…and got a bit…i will do the sim and then ask if any query…thanks..

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

[Kenada]

Qlad when are you taking your exam ? Oct 11th?

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

[Kenada]

Qlad when are you taking your exam ? Oct 11th?

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

[Journhi]

Hi all,

Could some one help explain DRD from corporate tax? As i understand it, take the DRD % (based on your ownership in the corp) x the dividend = DRD. But there is a rare exception if DRD < taxable income before DRD < Dividend, then you take the DRD% x the taxable income instead of the dividend.

I am going through the Ninja Note and under the DRD section, I don't understand that section at all. What does it mean if a DRD brings a loss situation, you can take full DRD and if taxable income remains after DRD, only a partial DRD (TI x DRD%) is allowed? Is my understanding of when to multiply the DRD% against dividend vs TI wrong?

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[Journhi]

Hi all,

Could some one help explain DRD from corporate tax? As i understand it, take the DRD % (based on your ownership in the corp) x the dividend = DRD. But there is a rare exception if DRD < taxable income before DRD < Dividend, then you take the DRD% x the taxable income instead of the dividend.

I am going through the Ninja Note and under the DRD section, I don't understand that section at all. What does it mean if a DRD brings a loss situation, you can take full DRD and if taxable income remains after DRD, only a partial DRD (TI x DRD%) is allowed? Is my understanding of when to multiply the DRD% against dividend vs TI wrong?

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[UCMCPA]

DRD is limited to the DRD calculation (ownership% x Div) or the Taxable Income x the DRD %.

You take the LESSER of the two UNLESS it will create a loss, then you take the DRD amount that will create a loss.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

DRD is limited to the DRD calculation (ownership% x Div) or the Taxable Income x the DRD %.

You take the LESSER of the two UNLESS it will create a loss, then you take the DRD amount that will create a loss.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Qlad]

@insiyah…my exam is on Oct 10th…

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

[Qlad]

@insiyah…my exam is on Oct 10th…

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

[Author]

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