REG Study Group October November 2017 - Page 24

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  • #1651321
    jeff
    Keymaster

    Posting 4 links like that will trigger the spam alert, FYI.

    Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

    #1651378
    pcunniff
    Participant

    Cool – thanks for the helpful tips.

    I have a question for those using CPA EXCEL for partnerships:

    The text in the book states: Frequently encountered ordinary income and deductions (non-separately stated items) include
    1) Sales less cost of goods sold

    Then why on the K-1 (line 1) does it say ordinary income? This is a separately stated item..

    Can someone please elaborate more as to why Sales less COGS (ordinary income) is not separately stated to each partner on the K-1 (as discussed in the book)? I am reading this and am driving myself crazy because I always assumed that the partnership itself isn't taxed, but ordinary income flows through to the partners (line 1).

    Again, Sales less COGS is ordinary income and the book states (frequently encountered ordinary income and deductions (NON SEP STATED ITEMS INCLUDE) sales less COGS whereas I think this should be sep stated.

    Thanks

    #1651387
    pcunniff
    Participant

    I think I may have answered my own question. I believe its saying that ordinary income is reported on the 1065, so it would also be non sep stated. They should mention that its both separately stated and non sep stated in the text and not confuse candidates.

    #1652228
    jeff
    Keymaster

    Ask the NINJAs:

    1) What is the Recommended CPA Exam Study Time Per Section?

    2) Do you Really Need to Take CPA Exam Notes?

    Ask the NINJAs: Recommended CPA Exam Section Study Time

    Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

    #1652579
    LCros
    Participant

    @Pharaoh

    I thought you were gonna let us know how your exam experience was since you were scheduled for the exam on Saturday…I suppose you have gone ghost?

    #1652710
    jeff
    Keymaster

    Ask the NINJAs: How to Re-Write Your CPA Exam Notes
    (It may be the 2nd most-important part of CPA Exam prep)

    Ask the NINJAs: How to Re-Write Your CPA Exam Notes

    Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

    #1653058
    pcunniff
    Participant

    Looks like we lost some momentum on here. @LCrOS I think we need the pharaoh back.

    Time to test the waters a little bit here..

    I feel good with estates. However, when would someone use the 1040 to record income for the year vs the 1041? I understand that the 1041 is income earned after date of death (wages/interest/dividends). BUT, would the income earned before date of death (wages on 1040) also be included on the 706 (gross estate) or would it be separate?

    I think if we get this concept down – we wont get tripped up on any estate or trust related simulation. Feel free to bounce ideas off me. Again, would income normally earned or inclusive of the 1040 be included in the GROSS ESTATE (706).

    #1653202
    LCros
    Participant

    According to my book, form 706 must be filed on behalf of anyone who, at the time of death, had a gross estate exceeding the lifetime exclusion of $5,490,000. So, I can recall getting questions about estates where the lifetime exclusion wasn't reached so this form would not be filed.

    Also “receivables,” including income in respect to the decedent can be also included on the 1041.

    I did have this chart in my notes which, I think could be helpful, the X's tell what tax return it can go on..

    Tax Return (1040) Estate Tax Return(1041) Estate Tax Return 706
    Medical Bills X or X Normally goes here but if executor
    waives the right can go on ind. tax return

    Fees to the Executor X or X
    (Deductions)

    IRD (Income) X AND X

    I hope the format is ok.

    #1653209
    LCros
    Participant

    I can see the format of the chart is off.

    So medical can go on the 1040 and 1041 if the executor signs the waiver for it to go on the 1040 or 1041, otherwise it goes on the 706.

    Fees for the executor only go on form 1041 or form 706.

    IRD (Income in respect to the Decedent) goes on 1041 AND 706.

    #1653241

    @Jeff,
    As to,
    Posting 4 links like that will trigger the spam alert, FYI.
    Acknowledge. My apology.

    #1653400
    jeff
    Keymaster

    Ask the NINJAs: Watching Videos vs Reading Book (with ninja goats)

    Ask the NINJAs: CPA Review Videos vs Book

    Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

    #1653416
    pcunniff
    Participant

    I am looking on the IRS.Gov website and Tuition, along with fraternal orders are not deducted as charity according to the table. How come, in the CPA EXCEL lecture, schools/fraternities are listed as \”public charities\”? This is confusing. Makes it seem contradictory as you are able to deduct charitable contributions to public charities. Can someone elaborate this?

    FYI charitable contributions are an absolute must know for Reg

    #1653748
    drd1622
    Participant

    I have been a long-time reader of the Ninja form, but this is my first time posting. I sat for the first time yesterday “REG”, and just like so many before me have no clue what to think. I thought the M/C were fairly easy (good or bad) I have no idea, and I know it is no use worrying about. However, I thought I would share my experience and what I used to prepare.

    I started this journey with Wiley and could not stay focused or find the “need to know” material so I purchased Assault package for REG and fell in love. I swapped back and forth for the M/C to try and cover as many bases as I could. I listened to all of the audio on the way to and home from work “four times” completely, and all together accumulated almost 120 hours of study time. Is that too much, again no idea do to the fact it was my first go at the exam I didn't know what to expect.

    Finally, on exam day I showed-up early and just did some light reviewing while “praying the rosery” for the 2 hours before. The exam I thought was not too bad in the beginning, however, the SIMS for a lack of a better word killed me. I finished the M/C with 1.5 left to go, and as luck would have it was granted 5 SIMS of nothing but “IRC Code Research” from the CPA gods. I was left with 15 minutes on the last testate and by the grace of God at least but some kind of answer in them. As far as content, my test was mainly all BLAW and Property Transactions “Basis”. None of the SIMS had Individual tax or Corporate for that matter.

    Once again, I thought I would just share my overall first time go at the exam, and who knows maybe it will be a “Merry Christmas” with a “75”. In the meantime AUD here I come.

    #1653893
    j3cpa
    Participant

    Question: Pettifog Partnership distributes cash of $20,000, hot assets worth $5,000 and a parcel of land in a liquidating distribution to Li, a partner. The hot assets have a basis of $0 to the partnership. The land has a fair market value of $80,000 and an inside basis of $55,000. Li’s outside basis in Pettifog just prior to the distribution is $85,000. Identify the amount of gain or loss Li must recognize and Li's resulting basis in the land.

    Answer: my test bank is showing that there is $0 gain and $65k for basis in land. I thought that the basis has to be reduced by both CASH AND HOT ASSETS received thus there should be only $60k basis for the land? Can someone give me a clearer explanation? is my test bank wrong. thank you

    Study Material:
    GLEIM
    BEC - FEB/2012
    AUD - FEB/2012
    FAR - JULY/2012
    REG - JULY/2012

    #1653911
    jenpen
    Participant

    @j3cpa I'm not 100% sure, but I think it has something to do with the fact that the basis of the hot assets before distribution is $0. The partner takes the same basis upon distribution, so that wouldn't lower his basis at all.

    AUD - 56 - 68 - 61 - 9/8/16
    REG - 75
    FAR - 7/15/16
    BEC - TBD

    Wiley CPAexcel and NINJA 10 Point Combo

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