[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

Post by Another71.

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

[Anonymous]

I was on track to take BEC January 3rd; however, I found out my busy season will be pushed back in January so here I am back at the REG retake (from previously failing). I didn't do any practice SIMS before using Becker and also scored a 67 on the first Becker final (actual score 66).

Back with a vengenance… using Becker, NINJA Notes, NINJA Audio, and will probably order the NINJA MCQs for addifitonal practice and the SIMS!

[steph2014CPA]

hi everyone!

Taking REG Jan 24 and just started studying. Hope I have enough time and I can be DONE!

Good luck to everyone

FAR: 80
AUD: 83
BEC: 79
REG: 56, 74, 74, January 6th

[Anonymous]

Lane, a single taxpayer, received $160,000 in salary, $15,000 in income from an S Corporation in which Lane does not materially participate, and a $35,000 passive loss from a real estate rental activity in which Lane materially participated. Lane's modified adjusted gross income was $165,000. What amount of the real estate rental activity loss was deductible?

A. 15,000

B. 0

C. 35,000

D. 25,000

Anyone mind explaining this? My answer was B and it is WRONG. My thinking was that the mom & pop exception of 25,000 is phased out due to the excess AGI over 150K.

The CORRECT answer nets the 15,000 in income from the S corporation (passive activity) and the 35,000 rental activity loss (also passive activity). So, first you're suppose to net all passive activities? Then, if there's a loss you can deduct that loss UP TO THE PASSIVE INCOME, which is 15,000 and then carryforward the remaining 20,000 loss? Is this the correct approach to this question?

[Anonymous]

@Blackhawks32:

The complete elimination allowance would have applied (since AGI exceeds $150,000) if Lane did not materially participate in the real estate rental activity. Zero deductible would have been the correct answer.

Since he materially participated, Lane could deduct only to the extent of income from all passive activities.

[Anonymous]

According to Becker the correct answer is A, $15,000. I also thought the correct answer would be $0 as well, considering the mom and pop exception phases out over $150K AGI.

[Anonymous]

So are you convinced now that the answer is A?

[Anonymous]

Wow that question is extremely easy lol. It just clicked. Thanks Amor!

[Anonymous]

Name agencies that can impose civil penalties for tax violation:

a. State Board, AICPA, IRS, SEC

b. State Board, IRS, SEC, SOX

c. IRS, SEC, SOX, State CPA Societies

d. AICPA, SEC, State Board, SOX

[Anonymous]

A?

[Anonymous]

I feel like you're way ahead if your already getting those questions! But then again I am using Becker and just started B2 again (supplementing Jeff's materials as I find them to be pretty awesome and also a different perspective to the material). But yeah I'm just finishing up individual tax right now. Adjustments and itemized deductions is probably the second best thing to study in tax. Securities law is the first then the rest just pretty much sucks… 🙂

[Anonymous]

@Blackhawks32:

Who's way ahead?

In my retake for REG, I decided to skip R1-R4 and FIRST begin with R5 and read through R8. I have a limited background about the US laws and regulations so I thought learning the basics first would give me an advantage than just to master taxation rules and computations right away.

For my last quiz above, the correct answer is:

Name agencies that can impose civil penalties for tax violation:

b. State Board, IRS, SEC, SOX

Explanation:

AICPA and State CPA Societies can only deal with membership. (sanction, expel, suspend, terminate, require CPEs). The process can be done without a hearing.

State Board, IRS, SEC, and SOX can impose civil penalties.

And among the agencies that can impose civil penalties, only IRS can impose criminal liabilities/penalties.

[icandoit]

Hi everyone,

Hope everyone is studying hard for the exam in this blackout month 🙂

I have a question about ATT. I paid exam fee for AUD exam about 7 months ago and it will expire February 2015.

But I am not planning on taking AUD in Feb 2015 due to plan change.

After failing BEC, I submitted application again and it was approved. Now I need to select which section I want to include in my ATT. How can I select both BEC and AUD? It appears that I cannot select AUD because it's currenlty blocked for open ATT. I want to abandone the exam fee I paid for AUD since I can't take the exam b4 expiration date anyway.

To save reapplication fee of $50 as well as waiting time for the approval again, I want to find out how to make AUD unblock. Does anyone know how to do this? Shoudl I contact NASBA about this?

FAR: 74, 80
BEC: 70, 68, 2/28/15
REG: 75 Expired; 72
AUD: TBD

"And all things, whatsoever you shall ask in prayer, believing, you shall receive". Matthew 21:22

[thawdar]

How do you guys handle tax??? I m struggling a lot :((( any tips would be great. Too many things to remember

[Gabe]

Question: is anyone using JUST Ninja? right now, I am reading the Becker book and breezing through the homework, then plan on really nailing down the Ninja MCQ. Solid plan?

Also, Amor, when do you sit? I'm a little behind from your questions

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

[blueberrycpa]

Mr. Brown transferred property, which had an adjusted basis to him of $40,000 and a fair market value of $50,000, to Corporation B in exchange for 100% of B’s only class of stock and $15,000 cash. At the time of the transfer, the stock had a fair market value of $35,000. What is the amount of gain to be recognized by Mr. Brown?

A. $15,000

B. $0

C. $25,000

D. $10,000

@cpa2015: so the boot received here is $15000 that is why gain is to be recognized?

FAR- TBD
BEC - 75
REG - 76
AUD- TBD

[Author]

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