[jeff]

Trying something new…

[Anonymous]

Wiley does not explain this well enough for me to understand!! Please help:

Nonliquidating Distrib, C-Corp

Accum E&P

$40,000

Current E&P

($55,000)

Distribution in July

$15,000

How much is dividend? How much is the return of capital? How much is the remaining Accum E&P?

[mgoloubenko]

Officially joining the REG party that we have going on over here, I am currently on R1 and will be testing on Nov. 29th!

FAR 4/9/12- PASSED
BEC 7/13/12- PASSED
AUD 8/16/12- Ughhh 71, Rematch: 90!!!
REG-12/6/12 PASSED

USC MAcc- Fight on!

They say good things come to those who wait, but only those things that are left by those who hustle.

[Anonymous]

If an S Corp distributes appreciated property to the shareholders is the gains split proportionally among the shareholders.

[msmeyer]

@AnnaMay84

When the company makes a non-liquidating distribution, you first deduct current E&P, if that's not sufficient, take it out of accumulated E&P–if you take it from E&P (current or accumulated) you've got dividend income to the shareholder (and it's taxable).

General rule is that you don't net the two amounts UNLESS you've got negative current and positive accumulated–in this case, your dividend income is $0, and you've just got a return of capital to the extent of the stock's basis and non taxable.

As mentioned above, if you've exhausted E&P, it becomes a “return of capital” and it is tax free PLUS it reduces the shareholder's basis of common stock. After you've exhausted your basis = capital gain and taxable as capital gain.

As far as the remaining accumulated E&P, I believe you've got a deficit of $15k – anyone correct me if I'm wrong on this. The only reason I think it's this is because the formula would be: accum E&P at beginning of year +/- current E&P less distrib from current E&P – distrib from accum E&P = Accum. E&P at year end. Since you are not making distributions from E&P and it is return of capital, I assume it doesn't affect your accumulated E&P.

Summary (in order):

Current E&P – dividend income and taxable

Accumulated E&P – dividend income and taxable

Return of Capital – Tax free and reduces your basis

Capital gain distribution – taxable as cap gain

BEC - 86
FAR - 76
AUD - 73, 86
REG - 61, 73, 82

DONE!!

CPA, CIA, CRMA

[Anonymous]

Thank you msmeyer!!!

I have another question guys, How do I figure out if an ADJUSTMENT to AMT before ACE should be added OR subtracted? I know all preferences must be added back .. and I guess I don't really get AMT! So when you get to the ACE portion, I'm not sure whether to add or subtract the “MIND” portion (using Becker's approach here)

[Richwind99]

Hey guys. I took REG again on October 2nd after missing by one point back in August 2012. I really need to pass this time, its driving me nuts. I think I did really well on the MCQ, and I think I did okay on the Sims, but I definitely missed a considerable amount of points. I'm having severe anxiety about the exam. Here are my stats:

AUD – 76 (Nov 2011)

BEC – 68 (Jan 2012 – Accidentally exited out of the writing exercise after only completing one of three essays!), 78 (April 2012)

FAR – 76 (Feb 2012)

REG – 74 (Aug 2012), Took again 10/2/2012. I don't find out until November 5th. This is really wearing on me!

[HFMCPA]

I just came off a BEC exam. I am going into REG now (November). So, if anyone wants in, they are welcome to join. I am going to just be doing questions and simulations. I think by doing questions we can understand the theory better. (Just like the dividend question above.)

FAR - 81 (Expires 3/2013)
AUD - 68
REG - 51,54,73
BEC - 10/17/12

[msmeyer]

@AnnaMay84

The adjustments (“LIE” in Becker) depend on whether you are using an acceptable AMT method or not. For example:

1. Long Term contracts – you can only use percentage of completion for AMT purposes. Therefore, if you used completed contract, you need to recalculate using percentage of completion and add back if you recognized less with your current method (% of Completion would have made you recognize more income). Subtract from Taxable income if % of completion would have given you less income.

2. Installment Sales – not allowed in AMT. Calculate using the full accrual method and same logic as in #1– if installment sales would make you recognize less income than accrual, the you need to add back, and vice versa.

3. Excess depreciation of tangible propety (post 1986) – Real property– add back excess over straight line for 40 yrs; personal property, add back excess over 150% MACRS.

Hope that helps! I actually went and got the info for the first two line items from the IRS (Instructions for form 4626) and the last one from becker/ninja.

BEC - 86
FAR - 76
AUD - 73, 86
REG - 61, 73, 82

DONE!!

CPA, CIA, CRMA

[msmeyer]

Taking REG tomorrow at 8am. All please send positive energy my way (all the way to beautiful Tampa, FL). I need it mainly because I just got sick (uggh)–I scheduled my exam yesterday morning (talk about last minute) and by 3pm felt a tickle in my throat (LOL).

A quick word on review programs– Becker does an OK job with Regulation. Just make sure you watch ALL lectures and do ALL Homework. This is my second go-around and this time I actually did things right–believe me…it makes a world of a difference! I supplemented the FAMOUS Ninja Notes and Ninja Audio (Jeff is super awesome at summarizing things). I feel as ready as can be.

Will post on my experience same day on the exam experience thread–so be on the lookout. Hope I get the same exam I got last time (haha!!)

After this, Audit…lovely.

BEC - 86
FAR - 76
AUD - 73, 86
REG - 61, 73, 82

DONE!!

CPA, CIA, CRMA

[mgoloubenko]

Ugh I am already displeased with REG. What chapters did you guys find to be most difficult? I thought R1 was okay, did fairly well the 1st time through. Now R2 is making my head spin, with all the different above/below AGI line items. Deductibles at different AGI percentages, credits…. like what.the.!!!!!

What is the best way to get this stuff down, like basically brute force memorization?

FAR 4/9/12- PASSED
BEC 7/13/12- PASSED
AUD 8/16/12- Ughhh 71, Rematch: 90!!!
REG-12/6/12 PASSED

USC MAcc- Fight on!

They say good things come to those who wait, but only those things that are left by those who hustle.

[skintapeup]

@mgoloubenko – Chapters 1-4 in Becker are def. way harder than the business law stuff (maybe I just love the b-law material). Individual, corporate and partnership tax are very important topics and you have to know the differences between them etc. You don't have to memorize the phase out limitation #'s etc. Just know that a phase out exists. The above/below the line deductions are not difficult once you read them, re-read them and re-read them some more. Sadly, I keep getting low 70's on this section and re-taking it Nov. 21st. I tend to get Simulations that Becker/Wiley do not cover well at all and I see myself guessing too much. Good luck in your studying and hopefully we both passed Audit this time around 🙂

[momto5]

I have made it to REG 7 at this point and am just SO anxious to get to the end! I already don't remember much about all those tax chapters – need major review time! 2nd half of the book has been easier to digest than the first half, though. Not easy, just easier. I think I am just too anxious to have this whole experience be done and it is difficult to focus sometimes. I am hoping that all will gel during review time.

FAR - 92 (4/27/12)
AUD - 96 (7/17/12)
BEC - 92 (8/30/12)
REG - 91 (11/12/12)

[MRSJLeon917]

I just took FAR today (ugh :/) and now I'm joining the REG party. I have REG scheduled for November 28th. I'm really hoping this is an easier section for me since I was really good at Business Law in College, and I've worked in tax for 9 years (4.5 in public and 4.5 in a large corporation). That being said, I still know I have to put in a lot of hard work!

AUD (5/25/2012): 91
FAR (10/22/2012): 89
REG (11/28/2012): 89
BEC (01/05/2013): 82
Ethics Exam: 90

IL Licensed CPA - 7/15/2013

A long journey, officially DONE!

[Anonymous]

I need some help….I keep reading that when calculating individual charitable contributions they are taken in 50%, 30%, 20% order. Instructor keeps saying 30%, 50%, 20%. Which is it?

[taxdiva]

Generally, you can deduct cash contributions in full up to 50% of your adjusted gross income.Generally, you can deduct property contributions in full up to 30% of your adjusted gross income.Generally, you can deduct contributions of appreciated capital gains assets in full up to 20% of your adjusted gross income.

Charitable contributions in excess of these limits can be carried over to the following tax year. The excess contributions can be carried over for a maximum of five years.

That make sense? Just remember:

cash-50%

property-30%

appreciated capital gains assets-20%

REG(10/23/12)- Passed. Life happended and lost credit - 18 month expiration)(Retake soon)
FAR - Passed. Used Becker.
AUD - Passed. Used CPAExcel (now Wiley)
BEC- Plan to take October-ish.

Just give me a 75!

[Author]

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