[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]

@s2s I am holding off…It'd be pointless to start studying now when I can't take it again until April. My Becker also expired. If I failed, I'll use Ninja and maybe WTB. I am not throwing money at Becker. If I were you I'd start studying Far…or take a nice 2 week break lol.

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

[Anonymous]

I have a question on how to compute the realized gain on appreciated property subject to a mortgage and assumed by the partnership. the partner contributed this property for a 50% interest.

is it this: FMV less basis= realized gain to partner on contribution for interest in partnership? Does the liability come into the calculation of the realized gain to partner?

I understand recognized gain liab exceed basis, and partnerships basis is adj. basis+gain recognized to partner.

[sweetmoon]

FAR : 71, 83
AUD : 73,88
BEC : 87
REG : sweet 82 and DONE !!

[sweetmoon]

FAR : 71, 83
AUD : 73,88
BEC : 87
REG : sweet 82 and DONE !!

[Anonymous]

@71hemicuda – Yes, a gain is recognized when property is contributed subject to a liability. Just checked Wiley and it says it's the excess of liability over the adjusted basis.

Example: Property contributed adj. basis = $4000 for 20% interest

Mortgage = $6000

Mortgage given up = $6000 * 80% = 4800

4800 – 4000 = 800 gain

[leglock]

be careful on this because Becker has a simulation whereby you must compare the basis of ALL property given vs the liability assumed to determine if there is a gain to recognize. You do not just compare the liability assumed vs the basis of the property for which the liability was assumed. An example would be when you contribute property with basis of 4000 and mortgage assumed of 4800 but you also gave 2000 cash. Basis of property given is 6000 and liability assumed is 4800 which means do not recognize gain.

[Anonymous]

CRACKED Not to give any info on the exam, but my question is; what is the realized gain on the contribution of property? realized and recognized are different. the recognized gain is $800, but what is the realized gain?

[s2sylvir]

@71hemicuda

Realized is always FMV less NBV

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

Becker for all + FAR 10 Point Combo

[Anonymous]

s2sylvir is right. Realized is always the FMV less adjusted basis

[Mika]

Ninja # 1034

Browne, a self-employed taxpayer, had 2014 business net income of $860,000 prior to any expense deduction for equipment purchases. In 2014, Browne purchased and placed into service, for business use, office machinery costing $520,000. This was Browne's only 2014 capital expenditure. Browne's business establishment was not in an economically distressed area. Browne made a proper and timely expense election to deduct the maximum amount. Browne was not a member of any pass-through entity. What is Browne's deduction under the election?

A.$25,000

B.$500,000

C.$2,000,000

D.$520,000

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

[funtimesNOT]

Is there any ways to remember all this Holder in due course, and bear , order paper rules??? I swear this is the only thing I can't grasp for some reason, it is really bothering me!

AUDIT - 79
FAR - 64, 77
BEC - 69, 71,79 - DONE!
REG - 60, 75

Nothing in the 80s ; however, I worked full time the whole time! (like 10 hour days) so it can be done 🙂

[Mika]

You answered A. The correct answer is B.

Browne is allowed to expense up to $500,000 in 2014. Therefore, since Browne's purchase cost $520,000, he can only deduct the $500,000.

IRC Section 179

Note

Taxpayers (except trusts, estates, and certain noncorporate lessors) can elect (on Form 4562) to expense up to $500,000 of the cost of personal property purchased and used in the active conduct of a trade or business. The amount of the deduction cannot exceed net income before the Section 179 deduction. Excess amounts carry over to future years.

If the taxpayer purchases, in 2014, qualified tangible personal property in excess of $2,000,000, the $500,000 is reduced dollar for dollar.

For example, if the taxpayer purchases $2,000,000 of qualified tangible personal property, only $500,000 can be expensed.

Note

Some of the tax breaks and amounts discussed here originally expired in tax year 2013, but were extended in December 2014 by the U.S. Congress for tax year 2014.

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

[leglock]

Aside from the 500k sec 179 deduction wouldnt u also get to deduct some depreciation too?

[Mika]

Dole, the sole owner of Enson Corp., transferred a building to Enson. The building had an adjusted tax basis of $35,000 and a fair market value of $55,000. In exchange for the building, Dole received $40,000 cash and Enson common stock with a fair market value of $15,000. What amount of gain did Dole recognize?

A: 0

B: 20,000

C: 40,000

D: 55,000

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

[wmcpa]

B?

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

[Author]

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