[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

[nib]

rosecpa

Following J/E will give you more understanding .

Dr New asset
Dr Boot received
Cr Old asset
Cr Boot paid
Cr Gain recognized

Basis (New) = AB (Old) + Recognized G – Boot Received + Boot Paid

@ amor D
please help me to understand the term deferred gain or deferred loss in this . When we aRe doing required J/E , why one will deferred G/L .

[nib]

rosecpa

If possible please post your mcq question of breach of substantially performance

[rosecpa]

Thank you amor d, the real question is- do you male the guy take it apart and start again because it
t was done intentionally?
Any last minute advice?

[ahugemistake]

Best of luck today Rose.

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

[fruitsyrup]

Bingo Corp. had $500,000 gross income from business operations and $625,000 of allowable business expenses for 2015. It also received $150,000 in dividends from Blackjack Corp., a domestic corporation of which it owns 22% of its stock. It also has a net operating loss carryover from 2014 of $85,000. What is Bingo's net operating loss for 2015?

A.
$95,000

B.
$80,000

C.
$25,000

Incorrect D.
$180,000

Hi, does anyone know why we don't ever include the 2014 NOL carryover to 2015? I thought it would get carried over?Thank you!

FAR - 71, 78
AUD - 71, 72, 78
BEC - 75
REG - 48, 60, 67, 76

[ahugemistake]

The question specifically asks for NOL for 2015, the loss being carried over originally belongs to a prior period so it will just coupled with this year's loss and carried over to future years.

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

[rosecpa]

HI all of you REG people, I'm just checking in (it'll take a while to get this habit out of my routine). I wanted to thank everyone for their support and assistance in clarifying so many issues.

The exam was a killer! The MCQ's seemed almost ok, but I think they got easier, and that's not a good sign. Also, so many big areas that I studied were nowhere to be found- DRD, Bankrupcy, barely any individual taxation…

And the sims, they were brutal!!!! I simply did not know what they wanted from me. The research was thankfully quite straighforward, but the others were simply unfair. The instructions were very ambiguous, and there were no dropdown/selection sims. All of them were filling in numbers that I had no idea what exactly they were looking for…

This is supposed to be my last exam, but I walked out with a bad feeling… I passed the first 3 by a generous margin, but when I left those I felt relieved.

Oh well, time will tell.

Good luck to the rest of you, and if my luck failed me I may just be back.

[Mole351]

retread from a question I found from a couple of years ago, but I have the same question so reposting. I'm using Yaeger:

“I understand Section 1245 no problem. But real estate is a little fuzzy to me. Based on the Yaeger video, in his example the entire gain for an individual selling real estate is Section 1231 LTCG (no depreciation recapture, right?). For a corporation 20% of the depreciation is recaptured as Section 291 ordinary income. The remainder is Section 1231 LTCG.”

I'm confused as the Wiley book used in conjunction with Yaeger shows 291 only relating to 1250 property, and says nothing about individuals selling real estate recognizing the entire gain (as 1231). Thoughts?

FAR - 87 (5/15)
AUD - 93 (8/15)
REG - 86 (2/16)
BEC - 87 (5/16)

[nib]

In simulation , question

Wai purchased a CD on February 1, 2015. The CD is a 12-month, $20,000 CD with a 6% rate that posts interest on the last day of each month.
Answer= This interest on CD is not included in line 8a from tax return 1040 – U.S. Individual Income
My query is
1)when it mentioned “ that posts interest on the last day “.
What is the meaning of word “post “.
2) Does it means,
Issuer of CD paid interest to CD holder
or
Issuer of CD posted entries and interest accrued in his CD account.

[nib]

@ rosecpa
hope for the best.

[Anonymous]

@Bin, yes.
Issuer of CD posted entries and interest accrued in his CD account.

$1,200 = Annual interest ($20,000 x 6%)
$100 = Monthly interest (1,200 x 1/12)
$15 = Assuming tax is 15% (100 x 15%)

Jan 1………………………………………………20,000
Jan 31………….100…………(15)……………20,0085

[nib]

@ amorD
Thanks

Please check my understanding .

CD interest is acrud but not yet received by taxpayer .So it is not included in 1040 form.
once it will be received by taxpayer , then it will be taxed.

[Anonymous]

I am not really sure about doing taxes for interest earned from CD. I've done banking only. I know banks automatically deduct the tax the same time the interest earned is credited to the account.

[nib]

so when we will solve simulation question . and it comes to CD interest . .
as taxpayer received aftertax interest amount . I would not be included in 1040 form .

[Anonymous]

Bin, that's a good question.
This is a kind of question that usually pops up in the actual test.
I hope someone confirms the definite answer.

[Author]

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