[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]

Alicia- looks like we're taking our REG tests close together! Good luck on FAR in February 🙂

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

[Anonymous]

Thanks, Alicia.

I posted the question above because I am getting confused with the explanation of this MCQ below:

I got the answer right but I am getting confused with Item D which seems to also qualify as a deductible medical expense.

Which one of the following expenditures qualifies as a deductible medical expense for tax purposes?

a.Health club dues.

b.Vitamins for general health not prescribed by a physician.

c.Transportation to physician's office for required medical care.

d. Mandatory employment taxes for basic coverage under Medicare A.

Explanation

Choice “c” is correct. Transportation to physician's office for required medical care is a deductible medical expense for tax purposes.

Choice “b” is incorrect. Vitamins are not deductible.

Choice “a” is incorrect. Health club dues paid on a membership for general health care are not deductible. In order for the dues to be deductible, the membership would need to be recommended by a physician for a specific illness.

Choice “d” is incorrect. Premiums paid for insurance that covers the expenses of medical care are deductible as medical expenses, including Medicare B premium payments and any voluntary premiums for Medicare A.

[WANNABE_CPA]

@AmorD, i think the explanation about D is saying that the premiums are deductible but the employment taxes are not deductible. I thought even the medicare A premium was not deductible.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[s2sylvir]

@Amor D

I agree with WANNABE_CPA, option D is referring to the employment taxes… It's there to trick you!!

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]

Okay, mandatory employment taxes for basic coverage under Medicare A CANNOT qualify as itemized deduction.

However, the ‘phrase' (statement) below is definitely deductible (below-the-line item)

Premiums paid for insurance that covers the expenses of medical care are deductible as medical expenses, including Medicare B premium payments and any voluntary premiums for Medicare A.

Except for an individual already covered with SS benefit?

If yes, then I rest my case now.

[WANNABE_CPA]

Yes, i think that's the reason why i felt that premiums for Medicare A are not deductible. So, they are not when you already have an SS benefit. Deductible otherwise.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[terryharm]

@gabe I wanted extra SIMs work this time so I purchased the GLEIMS SIM Generator, its only SIMS I thought they were helpful and gave me extra practice

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

PA license Pending..

[lauren725]

I thought I had reached the worst of business law, then I tried the Suretyship homework -_-

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[NJPRU]

Making my note cards on suretyship as well.. going to do those MCQs as well! You're scaring me Lauren! lol

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

IM GOING TO BE A CPA!!!!!

[lauren725]

The chapter and concepts aren't too hard, just some of those questions caught me off guard. Maybe round two will be better. Off to continue my corporate review tonight. let me know how it goes for you!

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[Anonymous]

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?

Ok. I thought the answer is 27,000 but it is 38,000. HELP????

[NJPRU]

@ashley – take a look at R3-44.. when a C Corporation distributes property,the basis is the FMV of the property received..

@Lauren – not sure if you are still around but I'm confused about one of the questions in Suretyship.. it's the second question of the set where it's asking which one is correct…

I.

State exemption statutes prevent all of a debtor's personal property from being sold to pay a federal tax lien.

II.

Federal social security benefits received by a debtor are exempt from garnishment by creditors.

I had originally picked that both of the are right, but's saying that on II is correct.. I had thought this because of the bottom of page 9 states that “most states protect”…

what am I missing?

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

@NJ Thanks!!

Yeah I picked both are correct too but I remember the first one being wrong because it is FEDERAL exemption statutes and not STATE.

[lauren725]

NJ – right. That is one of the 10 that I did not understand LOL. Did you see the question at the end about calling all hours of the night and being mean etc. and then the answer is that it is NOT included in the Fair Debt Collection Act? not sure about that one either.

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[Anonymous]

Kent Corp. is a calendar year accrual basis C corporation. In Year 1, Kent made a nonliquidating distribution of property with an adjusted basis of $150,000 and a fair market value of $200,000 to Reed, its sole shareholder.

The following information pertains to Kent:

Reed's basis in Kent stock at January 1, Year 1 $ 500,000

Accumulated earnings and profits at January 1, Year 1 125,000

Current earnings and profits for Year 1 (from operations) 60,000

What was taxable as dividend income to Reed for Year 1?

a.

$150,000

b.

$200,000

c.

$185,000

d.

$60,000

Wiley and Becker gave the me the same exact question but different answers. Wiley says C, which i agree with because of accumulated and current E&P total, while Becker says B because you have to add some of the gain from the 200,000-150,000 to the extent of the FMV of the prop to 185,000. Can anyone explain and know which one is correct?

[Author]

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