[jeff]

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Post by Another71.

[Anonymous]

Hi all,

I can't understand how could dividends be taxable at 15%-20% if they are included in total income on 1040.

[Tncincy]

Has anyone purchased the reg ninja book? I have all the other ninja products, just wondering,,,,,,,,,

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Anonymous]

@Gabe around may 9th but its not set in stone

@ anjanja you use the Qualified Dividends and Capital Gain Tax Worksheet found in the instructions for Form 1040 or 1040A to calculate the tax on qualified dividends at the preferred tax rates.

[BEACPA]

@HR…

Thanks for the update on R2-9!

FAR - 2/28/14 PASS Praise be to God!
AUD - 7/5/14 PASS Praise be to God!
BEC - 11/29/14PASS Praise be to God!
REG - 2/28/14 PASS Praise be to God!

[Holly]

@anjanja I hope this helps – Ordinary and Qualified dividends are reported separately on the 1040 and have different tax treatments. The Qualified Dividends get the preferential tax treatment, and are included in the amount reported for Ordinary Dividends (so the Ordinary total which includes Qualified will either be larger or equal to Qualified). I believe the total explanation to this is probably more information than what is meant to be tested on the CPA exam.

BEC - 79
REG - 85
AUD - 5/27/16

[Gabe]

Rita Spano is an active participant in a company retirement plan. Her husband, John, age 45, works for a company that does not have a retirement plan. The Spanos' joint adjusted gross income for 2014 is $185,000. John contributes $4,000 to an IRA for himself. How much of this $4,000 contribution for John can the Spanos deduct on their 2014 joint return?

A.

$4,000

B.

$3,200

C.

$2,000

D.

$0

I understand the phaseout of 181k-191k

So, their AGI of 185k is 4k over…can anyone explain the calculation to arrive at 3,200?

Ninja says–>(4k*2/10)= 800

4k-800= 3200

My question is, why are we dividing by 10?

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

[Anonymous]

Thanks, I was just curious. I am going to look at that schedule now

[Anonymous]

I asked this same question here few days ago, nobody responded.

I would think since 5500 is allowed, the calculation should be something like 5500*0.6=3300

[PasstheCPA7]

Hi guys,

What are ALL the non-deductible losses in REG that we need to know? I feel like there are so many other than “Wash sales, related party transactions, and personal losses”.

Aren't Involuntary conversions and like-kind exchanges also non-deductible losses?

Are there others I am missing that we need to know? Just trying to keep a list of non-deductible losses.

Thanks.

[Gabe]

Under the Sales Article of the U.C.C., which of the following requirements must be met for a writing to be an enforceable contract for the sale of goods?

A.

The writing must contain a term specifying the price of the goods.

B.

The writing must contain a term specifying the quantity of the goods.

C.

The writing must contain the signatures of all parties to the writing.

D.

The writing must contain the signature of the party seeking to enforce the writing.

Anyone explain why B is correct and NOT A?

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

[Gabe]

@anajaja exactly what I was thinking! Maybe the point is to know it's not $4k, or $0…so process of elimination?

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

[Anonymous]

maybe, but it doesn't explain the mysterious formula and $800

[Holly]

@Gabe My guess is that because the phase out is $10k, you divide the amount by the 10 to see what percentage of the contribution is disallowed.

BEC - 79
REG - 85
AUD - 5/27/16

[Gabe]

@HR yeah I thought that too…is there an “official” formula somewhere?

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

[Holly]

@Gabe not that I know of

BEC - 79
REG - 85
AUD - 5/27/16

[Author]

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