[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

[Gabe]

MCQs on weak areas…always end on a set of MCQs that I score 80+% so I finish feeling confident

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

[Jenny]

Hey all….First Time REG taker and I'm freaking out a bit. I use Becker and I'm R3 and not doing so well on the C Corp questions. Thought I would join in on this thread. Sitting 2/28.

Oklahoma Candidate
AUD - Pass (8/14)
FAR - Pass (11/14)
REG - Pass (2/15)
BEC - Pass (11/15)
Ethics Exam - Pass (12/15)

[terryharm]

started the 2015 mcq's aver score 79 trending score 80 8 hrs.

2014 mcq 73 hrs aver 74 trending 93, no one can say i didn't put the time in. lol…

plan for the rest of the week

Simulations in the a.m., mcq afternoon .

Celebrate the new year where hopefully we all become CPA's… (in the very near future)

Thurs/Friday, more simulations and mcq

Friday afternoon maybe a wiley practice exam, or becker 2nd practice exam

Saturday go over anything that is still not sticking, read over notes one more time, do another batch of mcqs, and a few simulations that gave me trouble.

Sunday take exam, go out to a nice dinner, and forget about this stuff until score release day.

That's my plan hopefully it works this time..

BEC: 81
FAR: 75
AUD: 81
REG: 85

PA license Pending..

[NJPRU]

Only 62 notecards for C Corps. 🙂 Not too shabby. *rolls eyes*

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

My studying begins tonight…. Taking REG 2/28/15! I'm hoping my recent knockout of the SEE (EA) Exams will help me on Reg CPA Exam!

[Gabe]

@terry when you first started what were your averages? I am starting with mostly 60%…and 78% in ethics ha. I have two weeks to bang out MCQs and SIMS until my eyes bleed

@NJ just wait until R8- I still have NO idea why they chose the last chapter as the longest…it was BRUTAL. But we shall overcome! When do you sit?

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

[Gabe]

Random question- Land donated to a church is limited to 50% of AGI, correct? Based off of the FMV on the date of donation? Whereas, stock is 30% of AGI. Yes?

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

[Gabe]

An individual taxpayer earned $10,000 in investment income, $8,000 in noninterest investment expenses, and $5,000 in investment interest expense. How much is the taxpayer allowed to deduct on the current year's tax return for investment interest expenses?

A.

$0

B.

$2,000

C.

$3,000

D.

$5,000

Anyone explain why B is the correct answer?

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

[Anonymous]

@Gabe- good question. The deduction for investment interest for any taxable year shall not exceed the net investment income for the taxable year. IRC §163(d)

Investment expenses are any of the investment expenses (other than for interest) that are directly connected with the production of investment income.

The deductible portion of investment interest would be limited to the extent of the net investment income of $2,000 ($10,000 – $8,000). The remaining $3,000 would be a carryover of disallowed investment interest.

[Mika]

@ Gabe

For the land donation question, I think if it is short term (<1 yr), it is cap @ 30% and you pick the lower of basis/FMV; whereas if it is long term (>1 yr), it is also cap @ 30% and you pick the higher of basis/FMV.

the 50% cap is not for capital gain property.

REG - 80 (02/13/2015) Roger + Ninja Flash Card + Ninja MCQ + Becker's Note
FAR - 84 (05/29/2015) Roger + Ninja MCQ + Some Wiley book questions
BEC - 77 (08/27/2015) Roger + Ninja MCQ + Half Wiley book questions
AUD - 87 (08/28/2015) Roger + Ninja MCQ + Half Wiley book questions

[Mika]

Ninja #1080

During 2014, Lee Smith had $100,000 of mortgage debt canceled because he was insolvent. Immediately prior to the debt cancellation, Smith's adjusted basis in his home was $150,000. As a result of the cancellation, Lee Smith will recognize income of:

A.

$0.

B.

$50,000.

C.

$100,000.

D.

$150,000.

Discharge of debt due to debtor insolvency is generally not included in gross income. Instead, the adjusted basis of assets is reduced by the amount of debt forgiven. In this case, Lee Smith's adjusted basis of his home will become $50,000 ($150,000 – $100,000). However, for 2014 the mortgage debt forgiveness has expired. Therefore, Lee will recognize $100,000 as income. Since Lee is not filing bankruptcy and the debt forgiveness has expired, he must claim the full amount of mortgage debt canceled unless this tax provision is extended.

I read the explanation and still has no clue…

REG - 80 (02/13/2015) Roger + Ninja Flash Card + Ninja MCQ + Becker's Note
FAR - 84 (05/29/2015) Roger + Ninja MCQ + Some Wiley book questions
BEC - 77 (08/27/2015) Roger + Ninja MCQ + Half Wiley book questions
AUD - 87 (08/28/2015) Roger + Ninja MCQ + Half Wiley book questions

[terryharm]

@gabe when I started I was averaging high 60's low 70's but keep in mind I kept studying after i took the exam in November so the information was till pretty fresh.

BEC: 81
FAR: 75
AUD: 81
REG: 85

PA license Pending..

[Gabe]

@Mika I have seen several questions for specifically Land donated to a church where the cap is 50%. When I come to the question again I'll post it.

In regards to your question…normally you would subtract the debt forgiven and assets and get $50k. However, that specific relief has expired for 2014, so he must recognize the entire 100k.

Note: here is a link: https://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-

@DC so never subtract investment interest expense- got it 🙂 I was getting 5k (10-5).

@terry thanks for the info! You're going to do great! You sit Sunday, yeah?

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

[wmcpa]

General question – When we're sitting in the Q1 REG, which REG rules/laws apply? Re: Ninja 1080: @Mika & @Gabe, both answers are available for mcq, but only one is correct.

When I took REG this past quarter, rules/laws from 2013 applied even though there were many 2013 laws that expired 12/31/13. I'm assuming those same rules/laws, which expired in 2013 will still be applicable in FY15 Q1 until Q2, right?

Confused!

All the best in the exam for those taking it this week!

FAR: 83
REG: 69, 69, retake Q1 2015
AUD: Q2 2015
BEC: Q2 2015

[terryharm]

Ok I think I just turned myself around in a big circle. Need to be set straight. I think my confusion is the difference between a Corp and a partnership. subject: Non-Liquidating distributions Gain/Loss for Shareholder, for company, and what basis the Companies basis or the FMV.

I have in my notes non-liquidating property distribution use FMV, Corp takes gain and SH uses the FMV as new basis.

then I was just doing some simulations (that I bombed) and the answers used the Companies basis, not FMV (the only difference was that the questions were related to partnerships) So am I correct that for Corps its FMV but for partnerships use the companies basis,, (as long as the partners basis doesn't go below ‘0'…

BEC: 81
FAR: 75
AUD: 81
REG: 85

PA license Pending..

[Author]

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