REG Study Group Q1 2015 - Page 52

Viewing 15 replies - 766 through 780 (of 2,393 total)
1 2 3 … 51 52 53 … 158 159 160
  • Author
    Replies
  • January 12, 2015 at 7:59 pm #651811
    omalloy
    Member

    @cpastudent22: Partners's basis in the partnership is increased either by the share of income or the increase in liability, and contribution of assets by other partners to the partnership.

    The basis is decreased by distributions of assets to the partner, share of partnership losses, and decrease in liabilities.

    E.g If partner contributes an asset to the partnership with tax basis $100, FMV $150, and it's subject to a $50 liability for 10% of partnership, then the new basis is 100-50+5=$ 55 (tax basis-liability+%liability).

    If it is not a like-kind transaction gains are no relevant to the basis calculation.

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

    Ethics 96

    Péter un plomb

    January 12, 2015 at 8:16 pm #651812
    Gabe
    Participant

    @omally some employees are exempt- for instance domestic workers making less than $1,000/yr

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

    January 12, 2015 at 8:45 pm #651813
    s2sylvir
    Member

    @omalloy

    FUTA is only paid on wages in excess of $7,000. If an employer hires 1,000 employees and pays only $6,000 per employee, he would not pay any FUTA taxes, even though in total he's paid $60,000 in salary for the year.

    On the other hand, if he pays one employee $60,000, the amount subject to FUTA is $53,000.

    You can check: https://www.irs.gov/pub/irs-pdf/f940.pdf Line 5 and Line 7 if that helps you get a “real world” idea of how the FUTA works.

    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 8:51 pm #651814
    The_AmYam
    Member

    … I'm hoping it won't take the whole 3.5hrs (optimistic here!) but I'm going to leave myself at least 1.5 for the sims.

    Also – my sim strategy is to click through them all and do the “short” ones first. if there are 2 research, I do the first research, do shorter sims, longer sim, if I get stuck I go do the other research and come back to the long sim.

    it's silly but it helps keep me calm when I get to the sims… I tend to get freaked out there.

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

    January 12, 2015 at 8:53 pm #651815
    s2sylvir
    Member

    @cpastudent22

    I just want to follow up on where you said mortgage/liability assumed is like C Corp. It is NOT like C Corp.

    Say A contributes property into a partnership owned equally by A, B, C, called ABC LLC. Say he contributes a $10,000 NBV property to the partnership, which has a $3,000 mortgage now assumed by all partners (this includes partner A!). Since every partner owns 1/3, partner A effectively also assumes $1,000 (1/3) of the mortgage.

    His basis =

    $10,000

    <$2,000> (portion of the mortgage assumed by the other 2 partners — $1,000 is assumed by him)

    $8,000 A's Basis ABC LLC (partnership)

    In a corporation, since the corporation assumes the mortgage, the entire $3,000 is deducted from his basis:

    $10,000

    <$3,000> (entire mortgage is assumed by the corporation)

    $7,000 A's Basis in ABC Corp

    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 8:54 pm #651816
    s2sylvir
    Member

    @cpastudent22

    I just want to follow up on where you said mortgage/liability assumed is like C Corp. It is NOT like C Corp.

    Say A contributes property into a partnership owned equally by A, B, C, called ABC LLC. Say he contributes a $10,000 NBV property to the partnership, which has a $3,000 mortgage now assumed by all partners (this includes partner A!). Since every partner owns 1/3, partner A effectively also assumes $1,000 (1/3) of the mortgage.

    His basis =

    $10,000

    <$2,000> (portion of the mortgage assumed by the other 2 partners — $1,000 is assumed by him)

    $8,000 A's Basis ABC LLC (partnership)

    In a corporation, since the corporation assumes the mortgage, the entire $3,000 is deducted from his basis:

    $10,000

    <$3,000> (entire mortgage is assumed by the corporation)

    $7,000 A's Basis in ABC Corp

    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 10:55 pm #651817
    knicks92
    Member

    hey so i feel like this is a stupid question but i just want to be safe..regarding questions on MACRS and Depreciation tables, we dont have to memorize the tables and percentages and stuff like that right? surely the exam will provide us with any of that info when needed?

    Tough times don't last. Tough people do.

    B: 88
    A: 77
    R: 89
    F:

    January 12, 2015 at 11:06 pm #651818
    Gabe
    Participant

    @knicks I'm pretty sure they'll be provided but, can anyone else confirm?

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

    January 12, 2015 at 11:57 pm #651819
    Anonymous
    Inactive

    @knicks92 – I wouldn't spend any time on it. Most problems seem to give that type of information.

    January 13, 2015 at 12:12 am #651820
    knicks92
    Member

    thanks clucks i thought so. good luck tomorrow. third times the charm. your the real mvp for continuing to go at it

    Tough times don't last. Tough people do.

    B: 88
    A: 77
    R: 89
    F:

    January 13, 2015 at 1:26 am #651821
    Anonymous
    Inactive

    @knicks92 – haha. Thanks!

    January 13, 2015 at 3:37 am #651822
    Gabe
    Participant

    You GOT this clucks! Looking forward to hear how it goes!

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

    January 13, 2015 at 4:12 am #651823
    Anonymous
    Inactive

    @s2sylvir, thanks for your explanation. My original question meant to ask: what is the partnership's basis, (not the individual partners)

    When a partner contributes property to the partnership, the PARTNERSHIP's basis should be:

    1) nbv of sh + gain recognized by sh or is it 2) the greater of liability assumed by partnership and the nbv of sh + gain recognized by sh?

    January 13, 2015 at 4:13 am #651824
    Anonymous
    Inactive

    Question on complex trusts:

    If complex trusts can distribute corpus, why do we still subtract Capital gains allocated to corpus when calculating DNI?

    ADJ Net Income of trust

    +ADJ. tax exempt interest

    <capital gains>

    —

    DNI

    January 13, 2015 at 4:46 am #651825
    s2sylvir
    Member

    @cpastudent22 Oops sorry, I guess reading comprehension will be my worst enemy…

    I wrote in my notes that it's: Adj basis + gain rec by incoming partner OR debt assumed by partnership

    I know before the textbook gets into the different types of trusts, it says that capital gains and loses must remain with the trust (absent written provisions to the contrary). So my understanding would be that even if complex can't distribute corpus, capital gains and losses are an exception.

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

    Becker for all + FAR 10 Point Combo

  • Author
    Replies
Viewing 15 replies - 766 through 780 (of 2,393 total)
1 2 3 … 51 52 53 … 158 159 160
  • The topic ‘REG Study Group Q1 2015 - Page 52’ is closed to new replies.