REG Study Group Q1 2015 - Page 51

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  • January 12, 2015 at 3:49 am #651796
    The_AmYam
    Member

    Yes I've sat for REG twice – fall of 2011 and passed spring of 2012. lost my credit… so here i am again!

    There are a lot of E+P related SIMS in Wiley. and questions about add-backs/deductions to E+P.

    REG - 81
    FAR - 79
    AUD - 94
    BEC - OCT 15

    January 12, 2015 at 4:13 am #651797
    govtec
    Member

    I am having a hard time understanding the example given on page 35 of 2015 NINJA Notes. I don't understand the non liquidating distribution example…It says use the lesser of remaining partners basis $4K or partners basis in property $3K. Then the math below it calculates $4K-$3K = $1K??? Shouldn't it just be the $3K for the remaining partners interest???

    BEC - 12/13
    FAR - 5/14
    AUD - 8/14
    REG - 2/15
    Passed 6 of 6 CLEP Exam

    January 12, 2015 at 4:17 am #651798
    govtec
    Member

    Can someone explain to me accumulated adjustment account on page 50 of 2015 NINJA NOTES? How can one distribute $100K when the ending balance is $70K and what makes the $30K distribution non taxable?

    BEC - 12/13
    FAR - 5/14
    AUD - 8/14
    REG - 2/15
    Passed 6 of 6 CLEP Exam

    January 12, 2015 at 6:52 am #651799
    Anonymous
    Inactive

    Fox, the sole shareholder in Fall, a C corporation, has a tax basis of $60,000. Fall has $40,000 of accumulated positive earnings and profits at the beginning of the year and $10,000 of current positive earnings and profits for the current year. At year end, Fall distributed land with an adjusted basis of $30,000 and a fair market value (FMV) of $38,000 to Fox. The land has an outstanding mortgage of $3,000 that Fox must assume. What is Fox's tax basis in the land?

    Choice “b” is correct. Absent information to the contrary, we should assume this distribution is in the form of a dividend (especially because Fox is the sole shareholder). If the shareholder is an individual, the taxable amount of a property dividend from a corporation's earnings and profits is the fair market value of the property received (and the property's basis then becomes that fair market value). In this case, the shareholder is also taking on the responsibility for the mortgage on the property, but this affects only the amount of taxable income, as the debt is reported as a separate line item and does not affect the basis of the land

    Does this mean that in a distribution from the C-Corp, the shareholder basis will always be FMV?

    Since property dividends are taxed at FMV to the shareholder, does this mean their basis is what they were taxed at?

    January 12, 2015 at 7:14 am #651800
    s2sylvir
    Member

    @the_amyam

    Your question on the sec 179. 25k is the limit for 2014. 500 was the limit for 2013. Forget about the 500k/2mil phase out for the exam

    @govtec

    Without access to a ninja book I can only partially answer you. Distributions are tataxable only after its reduced 1) current e&p, 2) accumulated e&p, 3) AND stock basis

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

    Becker for all + FAR 10 Point Combo

    January 12, 2015 at 9:23 am #651801
    Mika
    Participant

    Ninja Q368

    Under the Secured Transaction Article of the U.C.C. (Article 9), which of the following requirements are necessary to have a security interest attach?

    i) Debtor has rights in the collateral

    ii) Proper filing of a security agreement

    iii) Value given by the creditor

    You answered A. The correct answer is C.

    Under Article 9 of the Uniform Commercial Code (U.C.C.), three things are required for “attachment” to occur:

    The debtor must have signed a security agreement or the goods must be in the possession of the creditor,

    The creditor must have given “value” (i.e., consideration to support the contract, e.g., goods on credit given to buyer) to the debtor, and

    The debtor must have rights in the collateral.

    The filing of a security agreement relates to “perfection,” not “attachment.”

    I thought FINANCING statement relates to perfection, not attachment, but security agreement deals with attachment.

    Did I overlook something?

    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

    January 12, 2015 at 2:21 pm #651802
    Gabe
    Participant

    For 2014, Robert had adjusted gross income of $100,000 and potential itemized deductions as follows:

    Medical expenses (before percentage limitations) $12,000

    State income taxes 4,000

    Real estate taxes 3,500

    Qualified housing and residence mortgage interest 10,000

    Home equity mortgage interest (used to consolidate personal debts) 4,500

    Charitable contributions (cash) 5,000

    What are Robert’s itemized deductions that are allowable for alternative minimum tax purposes?

    a) 17,000

    b)19,500

    c) 21,500

    d)25,500

    Isn't this the TIMME acronym? How do cash contributions fit?

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

    January 12, 2015 at 2:31 pm #651803
    Gabe
    Participant

    Ok…found this: https://www.nolo.com/legal-encyclopedia/how-attach-perfect-security-interest-under-the-ucc.html

    which states

    attachment= security

    perfection= financing

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

    January 12, 2015 at 2:33 pm #651804
    Gabe
    Participant

    see above…

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

    January 12, 2015 at 3:04 pm #651805
    The_AmYam
    Member

    s2sylvir – THANK YOU!

    REG - 81
    FAR - 79
    AUD - 94
    BEC - OCT 15

    January 12, 2015 at 6:28 pm #651806
    Anonymous
    Inactive

    Can someone clarify what the partnership's basis is in property contributed by a partner?

    1) Adj .Basis + Gain recognized by partner

    or

    2) The greater of: Adj basis + gain rec by partner OR debt assumed by partnership (which is the c-corp's basis)

    January 12, 2015 at 6:42 pm #651807
    knicks92
    Member

    How much time does every one plan on leaving for the sims? A friend of mine told me to leave 1.5 hours while my study material says at least an hour. I feel like 1.5 hours is a lot because i am a slower with MC than sims and it would suck to have extra time left and not be able to go back to the MC. Plus, I have heard of a lot of cases where people dont finish all of the sims and still manage to pass (worst case scenario).

    Tough times don't last. Tough people do.

    B: 88
    A: 77
    R: 89
    F:

    January 12, 2015 at 6:47 pm #651808
    Gabe
    Participant

    aiming for 1.5, personally.

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

    January 12, 2015 at 6:47 pm #651809
    Gabe
    Participant

    @cpa can you give me an example of a question?

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

    January 12, 2015 at 7:39 pm #651810
    omalloy
    Member

    Taxes payable under the Federal Unemployment Tax Act (FUTA) are:

    A.

    calculated as a fixed percentage of all compensation paid to an employee.

    B.

    deductible by the employer as a business expense for federal income tax purposes.

    Incorrect C.

    payable by employers for all employees.

    D.

    withheld from the wages of all covered employees.

    The correct answer is B, but why is C wrong?

    FAR 65, 70, 78
    REG 64, 76
    BEC 70, 80
    AUD 81

    Ethics 96

    Péter un plomb

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