[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.

[Anonymous]

If anyone uses the WTB, can you guys check out the AMT simulation for the individual taxpayer section? I have no idea where they get half their numbers from.

[Anonymous]

If a corporation distributes land with a tax basis of 100, FMV of 500, and liability of 800, what is the shareholders basis? I know the corporation will report a gain of 700, but not sure what would be the shareholder's basis.

[Anonymous]

Wouldn't the shareholder's basis just increase by FMV of 500? The shareholder's basis isn't affected by the liability? Is that the entire example in your book?

[taxgeek83]

I think it would be $500 because what would have essentially been a built-in gain is being taken care of at the corporate level. If it was a carry-over basis, that $700 would end up being taxed again if the shareholder sold the asset.

[Anonymous]

But shareholder basis is deducted by the liability on the land, right? So wouldn't it be zero? I know if the liabilty was only 200, shareholder basis would be 500-200=300.

[taxgeek83]

Maybe I'm confused – are we talking C Corporation or S Corporation? She's assuming the liability, so obviously the corporation recognizes the gain there (which you already knew). I think her basis in the land though should just be the $500 FMV – and she now has a $800 mortgage (liability) on it. If she sells it down the road, and the buyer assumes whatever is left on the mortgage, she'll recognize the assumption as income.

You're talking liquidating distributions, right?

[taxgeek83]

Maybe someone else can chime in on this, but my understanding is that in liquidating distributions the shareholder's basis in the asset received is its FMV. IRC Section 334(a)

[Anonymous]

It is FMV but decreased by the liability on the land. This is C Corp by the way.

Oh well, another question I have is tax exempt organizations are required to file an annual information return if gross receipts exceed 50,000 or 25,000 in a year? My book which is a 2013 version says 50k, but i believe wiley says 25k.

[taxgeek83]

Someone else had that question I think in the Q4 thread but I can't remember what the answer was. This from the IRS:

https://www.irs.gov/Charities-&-Non-Profits/Exempt-Organization-Annual-Filing-Requirements-Overview

It's current as of mid-2014, so I'm guessing it's $50,000. Someone correct me if I'm wrong though. I work with very current info, so I always get confused on current thresholds vs. tested thresholds. Oh, and I don't work with tax-exempt orgs, just pass-through orgs, so I'm not 100% sure on the corporate and tax-exempt stuff anyway. 🙂

[RandomAlt]

Hey all,

Took AUD at the end of November, waiting for my score on the 9th! I feel good about it so I'm moving on to REG (last test!!)

Anyone else here using CPAexcel to study for REG

So far I am not liking business law (which comes first). CPAexcel seems to throw EVERYTHING, and every exception at you. It doesn't emphasis what is important to know, and what isn't. I feel like I am over studying for a section that only accounts for around 20% of the exam, and think I should skim it more, and maybe come back and go in depth if I have time.

Anyone have any thoughts on this?

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[Anonymous]

@ RandomAlt – I used Yaegar review materials for REG and they give you a complete outline of the Law and Ethics sections to focus on. It helped a lot and I scored stronger in ethics and law when I first took exam. I ran out of time studying b/c I tried cramming in that exam after FAR so I bombed the Tax but praying for a passing score this time!

I wouldn't do any additional MCQs for the Law section though – just whatever is in the book, etc. For tax, I did all additional MCQs in Wiley test bank as well.

[Anonymous]

Does anyone know how the Sims are scored?

Specifically, if there are 7 SIMS in all on a Reg exam, and 2 of the 7 SIMS are one answer ‘Research' SIMS and the other 5 Sims each have 7 questions each for a total of 37 questions to the entire SIMS section: Are each of the 37 questions weighted the same? Or rather is each ‘Research' Sim worth as much as the other SIMs (each having 7 questions)? Or something else? Any educated knowledge in regards to this would be appreciated!

[RandomAlt]

@brittpone123

Thanks for the advice, I appreciate it.

I forgot to mention that I also have the Ninja Notes/Audio for REG. Does anyone know how sufficient those notes are for Biz Law?

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[Mamabear]

@cdwolf–I don't think anyone outside of the AICPA knows how the SIMS are scored. From my understanding they weight the scores based on how all the people sitting in the same score release window did on each question. If everyone got it right then it is worth less than if only 1 person got it right. FYI–There are only 6 SIMS on the REG exam and only 72 MCQ. AUD and FAR have 90 MCQ and 7 SIMS.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[mintz25]

I use the GLEIM products for REG and I know how they grade SIMS in their practice exams, and assumed that's how the AICPA scores them. Each of the 6 SIMS are worth the same amount of points. If you get the research question correct, you got 100% on 1/6 of the SIM section. If in another SIM there are 20 questions within, each are worth 1/20 of the 1/6. This stresses the importance of the research question. So this was my assumption on how its graded but don't think I've read it anywhere.

CMA, EA

BEC - 78 8/2014 1x
REG - 82 11/2014 1x
AUD - 76 2/2015 1x
FAR - ???

[Author]

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