[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for REG.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

[Anonymous]

@Marqzho, thanks for the information. I've taken REG in the entirety of 2015 and S-179 has been to me, what now and then? Even the review materials (rather Becker or NINJA) couldn't make their minds up. I guess outdated review materials should be tossed to keep the students from getting confused.

I agree with @Mcohen. S-179 shouldn't be even testable until Q3 of 2016.

Of course, I do my homework (sometimes). I try to google it, but so many different views pop up online.

So 50% bonus depreciation is extended until 2019. I didn't know that until today. https://www.section179.org/

[rosecpa]

Did anyone make a list of the 2015 phase outs?

[Anonymous]

They said, don't worry about the phase out amounts unless you have a sixth sense.

So far, this is the list I've compiled.

Adjustments/Deductions/Credits that have phase-outs:
1. PE [Personal Exemption]
2. AMT Exemption
3. ID [Itemized Deduction]
4. IRA [Individual Retirement Arrangement] Traditional/Roth
5. SS Benefits (Up to 85% included in TI – 50% during phase-in range and 85% beyond it)
6. SLIE [Student Loan Interest Expense]
7. Education – Tuition & Fees Deduction/Coverdell Educational Savings Accounts
8. AOC [American Opportunity Credit]
9. LLC [Lifetime Learning Credit]
10. EIC [Earned Income Credit]
11. CADCC [Child & Dependent Care Credit]
12. CTC [Child Tax Credit]
13. Adoption Credit

[Jackobe24]

I thought 2015 section 179 is 25,000, the 500k is like the phase out amount?? now i'm confused.

FAR - 9/8/16 (Hopefully it's my last CPA exam, God bless me!)
REG - 80
BEC - 81
AUD - 69, 81

[Jackobe24]

@Amor D do we really need to know all those phase out amounts for the exam??..

FAR - 9/8/16 (Hopefully it's my last CPA exam, God bless me!)
REG - 80
BEC - 81
AUD - 69, 81

[marqzho]

The deduction amount is $500,000 since 2010. The congress just passed the PATH act 2015 on Dec 21,2015. It made 2015 deduction amount at $500,000 and made it permanent. It phased out at 2m. If total qualify purchase is over $2m, deduction amount is reduced dollar by dollar for amount over 2m.

No review course can tell you 2015 amount is 25k or 500k before Dec 21. That's the reason for the discrepancy.

REG 90
FAR 95
AUD 98
BEC 84

[Anonymous]

@Jackobe24, most of the reviewers said we don't need to because these phase-out amounts are mostly indexed for inflation.

I am SO sick of REG!

[Jackobe24]

@Amor D, you got pretty close in your last 4 tries in REG. What did you have the most trouble with?

FAR - 9/8/16 (Hopefully it's my last CPA exam, God bless me!)
REG - 80
BEC - 81
AUD - 69, 81

[rosecpa]

[rosecpa]

Sorry about that. Thank you amor D, you just saved me some work!

[Claudia408]

Hi guys, can anyone help with my example of list of M-1 recons? This is what I have so far gathered from sample questions and Wiley text:

Add: non deductible expense and taxable items not included in book
– federal tax expense
– net capital loss (not allowed for corp)
– expenses in excess of limits
– prepaid expense
– interest expense
– warranty expense
– insurance premium

Subtract: income that is included in book and deductions not expensed in book
– muni interest
– life insurance proceeds
– DRD
– election to expense
– goodwill
– excess depreciation ?? not sure on this one

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Anonymous]

Reconciliation of I/L per Books to Taxable Income:
8 [FILTERED]
+F – FITE [Federal Income Tax Expense] (per Books)
+I – Installment Sale Income
-L – Life Insurance Proceeds
-T – Tax-Exempt Interest
+E – ECLOG [Excess Capital Losses over Gains]
+R – Rents Received in Advance
+E – Expenses Recorded on Books this year not on the tax return
-D – Deductions on this return not charged against book income this year

Expenses Recorded on Books This Year Not on the Tax Return:
10 [A COWARD PIMP]
A – Allowance for Doubtful Accounts
C – Contribution Carryover
O – Organizational Costs (Expense)
W – Warranty Accrual
A – Assets=> Different Basis of Assets
R
D – Book Depreciations
P – Pension Expense Accrued
I – Impairment => Goodwill Impairment per Books
M – Meals & Entertainment (50%)
P – Penalties

Deductions on this return not charged against book income this year:
9 [CA-POSTBAG]
C – Contribution Carryover
A – Assets => Different Basis of Assets
P – Pensions Paid
O – Organizational Cost (Amortization)
S – Section 179 Deductions
T – Tax Depreciation
B – Bad Debt=>Direct Write-Offs of Bad Debt
A – Actual Warranty Costs
G – Goodwill Amortization per return

[Claudia408]

wow thanks Amor! Was something suppose to go in the R under COWARD?

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Anonymous]

I'd like to add PAL (#14).
Please feel free to correct/add/update the list below. Thanks.

Adjustments/Deductions/Credits that have phase-outs:
1. PE [Personal Exemption]
2. AMT Exemption
3. ID [Itemized Deduction]
4. IRA [Individual Retirement Arrangement] Traditional/Roth
5. SS Benefits (Up to 85% included in TI – 50% during phase-in range and 85% beyond it)
6. SLIE [Student Loan Interest Expense]
7. Education – Tuition & Fees Deduction/Coverdell Educational Savings Accounts
8. AOC [American Opportunity Credit]
9. LLC [Lifetime Learning Credit]
10. EIC [Earned Income Credit]
11. CADCC [Child & Dependent Care Credit]
12. CTC [Child Tax Credit]
13. Adoption Credit
14.PAL [Passive Activity Loss] (Mom&Pop Exception)

[Anonymous]

I couldn't think of one. So that's a borrowed letter. I just need to come up with my silly mnemonic:(

[Author]

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