[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

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

@Jackobe24, I have trouble with Partnership, S Corporation, and Corporation. I always get them mixed up with basis, G/L recognition, etc.

[Anonymous]

@Amor D, those are some pretty clutch mnemonics. Thanks for sharing!

[Claudia408]

getting some mixed info on this i think – do fitness warranties have to be in writing or even stated orally?

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

[steph2014CPA]

hi! Is anyone using CPA excel? I took a practice test and got a 70%…. but many questions seemed familiar…. is there a way to select questions never seen before/ harder material based on studying?

thanks!

FAR: 80
AUD: 83
BEC: 79
REG: 56, 74, 74, January 6th

[Pandarama]

@steph – going to be honest, I'm not a fan of CPAexcels formatting for practice questions although they contain the same questions as every other program. I much more prefer ninjamcq, plus the cost isn't too shabby ($47 w/o discounts).

@ Everyone – Do any of you have mnemonic for AMT deductions/preferences/itemized deductions allowable?

BEC - 80
AUD - 64, 75 - credit lost, 90!!
REG - 73, 74, 83
FAR - 61, 72, 85

Feels good finishing on my best note. Time to watch the mailbox.

[steph2014CPA]

@Pandarama I used Becker for my other 3 parts as my firm covered the cost. But since I can't get through REG for some reason, my husband had CPAExcel software that doesn't expire so I've been using it. I bought NINJA, going to give it a try! thanks… see below for AMT mnemonics from Becker. Hope it helps!

AMT Income = +/- LID + PPP +/- MOLDD

REGULAR TAXABLE INCOME
+/- Adjustments to income
– Long-term contracts
– Installment sale dealer
– Depreciation adjustments
+ Preferences (items to increase income)
– Percentage depletion
– Private activity
– Pre ’87 ACRS excess depreciation
= Unadjusted AMT income
+/- Adjusted Current Earnings
– Muni interest income
– Organizational expense amortization
– Life insurance proceeds on key employees
– Difference between AMT and ACE depreciation
– DRD (under 20% ownership)
= AMT income
(Exception)
= AMT base
X 20%
= Gross AMT
(Foreign tax credit)
= tentative minimum tax
(Regular tax laity)
= AMT

FAR: 80
AUD: 83
BEC: 79
REG: 56, 74, 74, January 6th

[Pandarama]

@Claudia – fitness warranties are pretty much implied. Think of it this way: You walk into a gym and tell the trainer that you want to bulk up your arms using their fitness equipment so that your long-sleeve shirts no longer fit because your arms are too big! The fitness trainer is aware of your goal and why you came in there now because you specifically told them what you wanted to gain from going there and buying their equipment. The trainer using the information you've given them to find the right item to sell to you. The trainer tells you, “I have exactly what you're looking for!” Because they accept what you told them and they tell you that this product will do what you need it to do, then the fitness warranty is automatically attached to that sale. It doesn't need to be in writing because it's simply implied that the trainer understood what you needed. It also doesn't need to be flat out spelled out as a warranty.

Hope this helps!

BEC - 80
AUD - 64, 75 - credit lost, 90!!
REG - 73, 74, 83
FAR - 61, 72, 85

Feels good finishing on my best note. Time to watch the mailbox.

[Sheffi]

I notice LOTS of questions regarding environmental laws/regs. I don't think I had anything like that in the Becker course I did for REG. Anyone else notice this?

[mcohen1993]

@sheffi

I noticed that too. Becker doesn't even touch it. While I hope that means it won't be tested, I have seen people complain about M-3 showing up on their exam while Becker only talks abou the M-1 or maybe M-2. So just have a general understanding of broad topics to be safe. Like cancellation of debt isn't covered in Becker much but I could see it being a trick question they may throw at you.

REG: 91!!
BEC: 80!!
AUD: TBA
FAR: TBA

In the order I plan to take the exams.

[Claudia408]

i feel like i have no shot at passing Reg on the 1st try. 2 weeks out, and I've only seen about 900 questions and averaging just about 69%. UGH, just ranting…

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

[Sheffi]

anyone else having trouble with the research sims? i can't seem to access any of the literature…only 501 shows.

[marqzho]

https://www.law.cornell.edu/uscode/text/26

use this one.

REG 90
FAR 95
AUD 98
BEC 84

[Claudia408]

The answer provided that in year 2, no losses can be deducted and would be deferred – but why?

The following chart applies to Bettelli, an investor who owns two rental activities, Property A and Property B, and has no other involvement in passive activities:

Property Income (Loss)
Year 1
A (12,000)
B 5,000
Year 2
A (6,000)
B 1,000

Bettelli met the requirements for material participation in Year 1 but not in Year 2. Bettelli’s AGI in Year 1 was $140,000; in Year 2, $130,000.

In Year 3 Bettelli sells Property A for a $15,000 gain. How much of the gain must Bettelli report as ordinary income on Bettelli’s Year 3 tax return?

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

[Future Ninja]

Hi Claudia408. how are u doing? ^_^

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[another9215]

Hi all, can someone help with the following question?

Question: An individual taxpayer earned $10,000 in investment income, $8,000 in noninterest investment expenses, and $5,000 in investment interest expense. How much is the taxpayer allowed to deduct on the current year's tax return for investment interest expenses?

Answer: The amount allowed as a deduction for investment interest for a taxable year shall not exceed the net investment income. $10,000 investment income – $8,000 investment expense = $2,000 net investment income

Why does net investment income only take the $8,000 noninterest investment expense into consideration but not the $5,000 of investment interest expense?

[Author]

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