[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

[marqzho]

astreyamz

what review course you use? I don't know about ninja and becker. There are not many SIMS you can practice in Roger / Wiley. and how's your score when doing the MCQ?

REG 90
FAR 95
AUD 98
BEC 84

[steph2014CPA]

@ahugemistake

I have always used becker but due to REG being my worst nightmare, I got CPAExcel to change it up…. what I did which has really worked for me was listen to lecture, do the practice questions, then do the exam questions, and anything I got wrong go to the test and read about it…

however I had already gone through REG material once through Becker…. but that seemed to be a good method and moved pretty quickly..

Do you have NINJA MCQ?

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

[Jackobe24]

i'm freaking out about REG simulations….

I'm trending 80% in Ninja, 80% in the adaptive learning phase,

when I practice with Becker I usually get about 80 to 85% of MCQ correct as well….

but man….when I try to practice simulations, they still feel so hard, I'm so streaky in those….

anyone actually feel good about their chances in simulations?

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

[marqzho]

Jackobe24

dude, you are in good shape. I heard Ninja is the most difficult MCQ among review courses. Most people got +10 point in the actually exam =)

REG 90
FAR 95
AUD 98
BEC 84

[Claudia408]

marqzho – how would you formulate this Depreciation Recapture Question using Roger's method?

A taxpayer sold for $200,000 equipment that had an adjusted basis of $180,000. Through the date of the sale, the taxpayer had deducted $30,000 of depreciation. Of this amount, $17,000 was in excess of straight-line depreciation. What amount of gain would be recaptured under Section 1245 (“Gain from Dispositions of Certain Depreciable Property”)?

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

[ahugemistake]

Thanks for the tip steph, I plan on getting the ninja mcq as soon I go through the cpaexcel stuff, I don't want to side track myself with questions before finishing the material. I will just listen to the lecture and skip over when he gets side tracked. I feel like that is whats causing the videos to run longer. I liked the guy in the business law section, he was fast and to the point.

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[marqzho]

For 1245 “Gains be reported as ordinary income to the extent of prior depreciation”

Selling price : 200
Depreciation : 30
Adj Basis: 180

So Gain is 20 (200-180). How much need to be recapture as ordinary income under 1245 ? To the extent of prior depreciation = 20

Those ‘excess SL “, “17” only useful if we are doing Real property under section 1250.

case 2:
Selling price : 300
Depreciation : 30
Adj Basis: 180

Then gain is 120(300-180). 30 need to be taxed at ordinary income and 90 would be taxed at capital gain rate

Case 3
Selling price :300
Depreciation: 300
Adj Basis: 0

I throw this one here to let you understand the logic behind. In this case, without 1245, you will have a capital gain of $300. They taxed you at 15% capital gain tax rate. But you claimed depreciation in previous year for $300 which reduced your ordinary income which is taxed at 39%. So you have a big tax advantage in these transactions. Then they setup section 1245: “Gains be reported as ordinary income to the extent of prior depreciation”. So you will have a ordinary income for $300 instead of capital gain for $300 which basically offset all your previous depreciation claims

REG 90
FAR 95
AUD 98
BEC 84

[mrsD]

Hello, just want to wish everyone well and best of luck, retaing REG next month so guess I'll be hanging out here 🙂

Just want some advice I guess, REG is my last section. I've been using Becker, NINJA and Wiley. I did read all the book for Becker and watched almost all of the lectures, did most of the homework and almost a quarter of the test bank in Wiley and still come up short 6 points. But I knew I skipped and glance thru a lot.

Strategy: focus on weak areas (individual taxation and business law and SIMs) while also work on all other areas, reread NINJA notes and do about 50 MCQ/day and 3-6 SIMs. Listen to NINJA audio on way to work and any down time then MCQ and SIMs when possible. Take notes on missed question for 7 weeks (2hr/day and hopefully 10hrs on weekend, before busy season, sorry I'm not a Cramer). Hope that works! This is how I retake my audit for the 2nd time and I passed with a higher score. Any advice/tips?

I do work a lot on partnership (and very few Trusts, S and C corps) for a living (just an associate so far) so if I can help with partnership questions please let me know I'd try my best with my 50cent worth of knowledge :p

Night guys!

[mariam almas]

Hi guys,

Can anyone explain At Risk? Is this topic important for REG section ??

AUD: 81 (Done)
REG: Currently studying
FAR: TBD
BEC: TBD

NH

[steph2014CPA]

@mariam since I took REG before twice, I can tell you definitely need to know this. Not sure if it was my luck but I saw this more than I wanted to and wish I would have read over it. See below for my notes on this!

– tax losses generated by a partnership are deductible by the partners and can be used to offset ordinary income, HOWEVER for the partner to deduct the losses, the losses must clear 3 hurdles:
1 – tax basis
2 – at risk amount
3 – passive activity

at-risk limitation: the loss deduction cannot exceed the partners at-risk amount: this is basically the partners tax basis but excludes certain nonrecourse liabilities. (**REMEMBER: nonrecourse liabilities are those that no partner or related person has an economic risk of loss for that liability). Any unused loss resulting from at-risk limitation can be carried forward until the partner generates additional at-risk amounts to utilize the loss OR until they are used to reduce the gain from selling a partnership interest.

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

[marqzho]

At Risk is important concept for Partnership, S-Corp and other passive activities. It is not difficult concept in CPA exam (not in real life tho LOL)

You can only claim LOSS up to the amount you are AT-RISK

Let say for S-Corp
you put in $100 initial contribution. you are AT-RISK for that $100 or your basis is $100. if the S-Corp has net loss for $150. Since you are only AT-RISK for $100, loss for $50 need to be suspended and carried forward to future year.

That's why Basis can't go below zero

Let say Partnership
If the partnership assumes a recourse loan, meaning partner will be personally liable to the loan in case the partnership default, you increase your AT-RISK amount in the partnership. Therefore your basis goes up.

REG 90
FAR 95
AUD 98
BEC 84

[Claudia408]

Hey gang… so interpreted this question to ask for the itemized deductions FROM AGI, not For/To AGI. But it's both bc the answer is $6000. I know some question distinguish these two, so did I just misinterpret this Q? What about this question would make you think it's both? I mean, it's asking about deductions and not adjustments right?

Tom Lewis, a single taxpayer, had the following income and expense items for 2015:

Wages $ 55,000
Long-Term Capital Loss (4,000)
Deductible IRA Contribution (Tom is not
covered by a retirement plan at work) 2,000
Mortgage Interest on personal residence 5,000
Medical expenses not covered by insurance 6,000
Tom's personal exemption amount for 2015 4,000
Tom's standard deduction amount for 2015 6,300

What is Tom's total deductible itemized deduction amount for the year?

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

[marqzho]

Wage 55000 <–For/To AGI
Cap loss (3000) <–For/To AGI
IRA Deduction (2000) <–For/To AGI
= AGI = 50000
Mortgage Interest on personal residence 5,000 <–From AGI
Medical expenses not covered by insurance 1,000 <–(subject to 10% of AGI, so 6000-50000*10%)<–From AGI
itemized deduction = 5000+1000 = 6000
Personal exemption = 4000
taxable income = 40000

REG 90
FAR 95
AUD 98
BEC 84

[Pandarama]

@mariam almas – an easy way to think about “at-risk”: The money you put into the company that you have the risk of losing (typically your tax basis in the company).

It's the money in the business that has the potential to be lost if the business continues to have no profits/gains.

You give your friend $50 because he promises that he'll pay out back. The $50 is at risk because you don't know if you're really going to get your money back.

^ I use this thought when thinking about “at-risk” and partnership tax basis.

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.

[Theodore]

well i was doing ok on all the becker mcq until i got to ch. 2 AMT's. Got super confused with the adds and deductions. :/. I am scoring in the 80's for majority of the sections and a couple 70's. I want to be in the 90's :/ just venting guys

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[Author]

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