REG Study Group Q1 2015 - Page 136

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  • February 23, 2015 at 3:20 am #653079
    Sandia
    Member

    @ lab2008. This is how I understand:

    The gain to be recognized is the lesser of the gain realized (400M-250M = 150M) or gain in boot (mtg transfers or cancel with the transaction $120M – new mtg assume 70M = $50M ). The lesser is $50M.

    Please note if the mtg (mortgage) assume is higher that mtg cancel with the transaction, the loss is not considered as a boot, only the gain.

    FAR - 77 x2 Wiley book & no test bank
    AUD - 83 x3 NINJA Test bank 3 time
    REG - 80 x1 NINJA Test bank
    BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
    Ethic 100% Licensed VA CPA

    February 23, 2015 at 4:09 am #653080
    funtiks
    Participant

    how similar are Becker SIMS to the ones on exam? Mainly R3 and R4?

    I'm doing MCQ in 3 test banks (becker, ninja and wiley) and scoring above 80s, but SIMs just kill me.

    FAR - 76*, 73, 85
    BEC - 69, 72, 78*, 80
    AUD - 72, 71, 90
    REG - 71, 74, 85

    AFTER 3 YEARS I'M DONE!!!

    February 23, 2015 at 12:48 pm #653081
    Gabe
    Participant

    @fun I did all the SIMS in Becker and some in Ninja…nothing prepared me for the exam SIMS..it was unlike anything I'd seen in AUD or FAR..and the AL is pretty useless. That being said, know like kind exchanges and basis, those tend to be heavily tested topics.

    CPA, CFE
    CISA- Experience will be completed by August 2016

    February 23, 2015 at 1:06 pm #653082
    Gabe
    Participant

    Digging into different transactions…question:

    Rules:

    Basis in gifted prop

    *if sold at a gain- donor's basis

    *if sold at a loss- < of donor's basis or FMV at date of donation

    *if in the middle- No G/L

    My question is what numbers are we using to determine if it was sold at a G or L?

    Let's say

    DB- $32

    FMV- $27

    Sold- $33

    Would this be a G or L? Which numbers? Sold-DB or FMV?

    Thanks 🙂

    CPA, CFE
    CISA- Experience will be completed by August 2016

    February 23, 2015 at 1:32 pm #653083
    NJPRU
    Member

    Good Morning Gabe,

    For gifted property, you would first look at where the FMV falls. If FMV is above the gift basis, you would still stay with the gifted basis to determine your gain or loss. For example:

    Basis: $100

    FMV $120

    Sold for: $130 — gain of $30 ($130 proceeds – $100 gift basis = $30 gain)

    Secondly, here are the following rules for when FMV is lower than the gifted basis:

    1. Proceeds are less than FMV, use FMV. For example:

    Basis: $100

    FMV: $80

    Sold for: $70 — loss of $10 ($80 FMV as your basis – $70 Proceeds = $10 loss)

    2. Proceeds are more than your gifted basis, use gifted basis. For example:

    Sold for: $110 — gain of $10 ($110 Proceeds – $100 gifted basis = $10 gain)

    Basis: $100

    FMV: $80

    3. Proceeds are in between your gifted basis and the FMV of the gift. For example:

    Basis: $100

    Sold for: $90 — no gain or loss (simple rule: no gain or loss recognized on the subsequent sale of the gift)

    FMV: $80

    I hope that helps!!

    AUD: DONE
    FAR: DONE
    BEC: DONE
    REG: DONE

    IM GOING TO BE A CPA!!!!!

    February 23, 2015 at 1:34 pm #653084
    NJPRU
    Member

    @Amor – best of luck today! Knock em downnnn!!!!

    AUD: DONE
    FAR: DONE
    BEC: DONE
    REG: DONE

    IM GOING TO BE A CPA!!!!!

    February 23, 2015 at 1:38 pm #653085
    Gabe
    Participant

    @NJ Morning 🙂 Thanks! That helps a ton. Hope you had an awesome birthday and happy studying!

    @Amor you GOT this!!!

    CPA, CFE
    CISA- Experience will be completed by August 2016

    February 23, 2015 at 2:35 pm #653086
    Sandia
    Member

    @ GAbe..

    The idea is recognize the income (always gain – DB) and minimize the loss so use the lesser of FMV or DB. But if you cannot determinate the loss or gain – do not recognize anything. This is how I understand, I hard for my memorize theses so I try to look for some logic – I hope this is help. 

    FAR - 77 x2 Wiley book & no test bank
    AUD - 83 x3 NINJA Test bank 3 time
    REG - 80 x1 NINJA Test bank
    BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
    Ethic 100% Licensed VA CPA

    February 23, 2015 at 3:16 pm #653087
    Gabe
    Participant

    Thanks @Sandia! Looks like we're sitting pretty close together. Is this your first time taking REG?

    Happy studying!

    CPA, CFE
    CISA- Experience will be completed by August 2016

    February 23, 2015 at 3:49 pm #653088
    Sandia
    Member

    Yes, it is… I finished REG part yesterday but I keep forgetting so review everyday help me… Bussines law is next 2 weeks and 3 weeks review everything and take 5 days vacations from work, kids and hubby 🙂 …

    If I still do not feel prepared I will take again in July. Nothing is new to me… Things come back to me brain little by little…

    FAR - 77 x2 Wiley book & no test bank
    AUD - 83 x3 NINJA Test bank 3 time
    REG - 80 x1 NINJA Test bank
    BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
    Ethic 100% Licensed VA CPA

    February 23, 2015 at 4:20 pm #653089
    Anonymous
    Inactive

    I just came across this ninja question

    Smith (single filing status) has an adjusted gross income (AGI) of $120,000 without taking into consideration $40,000 of losses from rental real estate activities. Smith actively participates in the rental real estate activities. What amount of the rental losses may Smith deduct in determining taxable income?

    and the explanation states:

    “Individuals may offset up to $25,000 ($50,000 if married filing jointly) of ordinary income with losses from rental real estate activities. This exemption is reduced (but not below zero) by 50% of the amount by which the adjusted gross income of the taxpayer for the year exceeds $100,000.”

    I haven't seen anything about $50000 for MFJ, I thought it was $25000. Also couldn't find anything about 50000 on IRS site. Is it implied or something?

    February 23, 2015 at 4:40 pm #653090
    s2sylvir
    Member

    @anjanja

    I seem to echo your thoughts. I just read the IRS Pub 527 (https://www.irs.gov/publications/p527/ch03.html)

    Under the “Maximum special allowance.”, it says:

    •$25,000 for single individuals and married individuals filing a joint return for the tax year

    I agree! It says nothing about $50,000

    BEC - PASS (79)
    AUD - PASS (63, 71, 74, 74, 83)
    REG - PASS (88)
    FAR - PASS (58, 89)

    Becker for all + FAR 10 Point Combo

    February 23, 2015 at 4:42 pm #653091
    Gabe
    Participant

    Looked over the IRS website and it states $25k as max. Not sure where the $50k is coming from.

    CPA, CFE
    CISA- Experience will be completed by August 2016

    February 23, 2015 at 4:42 pm #653092
    Anonymous
    Inactive

    But why though, it looks like you are done with REG

    February 23, 2015 at 4:42 pm #653093
    NJPRU
    Member

    @s2sylvir – i literally just looked at that! nothing about $50k.

    AUD: DONE
    FAR: DONE
    BEC: DONE
    REG: DONE

    IM GOING TO BE A CPA!!!!!

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