[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

[rvelez]

Hello People,

I'm having a rough time getting through business law lectures. It's super boring!!! Any tips?

Roberta

[Gabriella]

Do we need to memorize code section numbers for REG?
I have only seen one practice question on this and it was for BEC re: SOX.

[CPA2B_NJ]

@Test.Taker – I haven't seen any questions asking for codes, normally the codes are listed in the question with the title of the code. You do have to remember Rule 504 etc.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[CPA2B_NJ]

I finished all the lectures for Roger, scored decent in the questions, but my mind seemed to have forgotten everything I learned in the past month. I'm rewriting my notes this week, so next week I can do Ninja but so much information has been blanked out of my mind!

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[CPA2B_NJ]

@rvelez – could it be you're finding it boring because you know a lot of the information? I found a lot of Business Law to be common sense or topics I learned on the job, so while watching the Roger lectures I sped it up by 2x.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[rosecpa]

ATT Becker users (or anyone else who can answer this): There is a very good example of how to prorate home rental expenses if you used it for rental and personal use.

I was wondering if anyone can tell me how insurance would be divided- like interest (rental portion/ full year), or like utilties (rental portion/ total use)?

[ahugemistake]

In general, a corporation is not required to file Schedule M-1 (Reconciliation of Income (Loss) per Books with Income per Return) along with their Form 1120 if:

A.
net income per books is less than $25,000.

B.
taxable income is less than $25,000.

Correct C.
total assets and total receipts are less than $250,000.

D.
total liabilities are less than $250,000.

Has this limit been lowered to $25K?

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

[quamikazee]

@ahugemistake

Per irs.gov, form 1120 instructions:

“Corporations with total receipts and total
assets at the end of the tax year less than
$250,000 are not required to complete
Schedules L, M-1, and M-2 if the “Yes”
box on Schedule K, question 13, is
checked.”

Therefore answer is C.

REG - 81 - 2/3/16
BEC - 87 - 4/5/16
AUD - 87 - 6/10/16
FAR - 8/29/16

Becker Self Study only

[ahugemistake]

Is this right?

Question #: 1081 Category: 5C Adjustments and Deductions to Arrive at Taxable Income
Mike and Jane Lewis, a married couple, file a joint 2015 federal income tax return. They have one child, age 15, whom they support 100%. Both are under age 65. They have the following income and expenses for the year:

Mike's wages $44,000
Jane's wages 40,000
Total allowable itemized deductions 10,000
Mike's contribution to an IRA 4,000
Jane's contribution to an IRA 4,000

Mike is not covered by pension plan at work, while Jane is covered by a plan at hers.

The exemption amount (per exemption) for 2015 is $4,000. The standard deduction amount for married filing jointly is $12,600.

What is the Lewises' adjusted gross income for 2015?

A.
$84,000

B.
$80,000

Correct C.
$76,000

D.
$72,000

The key factor in this question is that both Mike's and Jane's IRA contributions are deductible. Beginning in 1998, individuals are no longer considered participants in a company retirement plan simply because their spouses are. Since Mike is not covered by a pension plan at work and their joint adjusted gross income is under the threshold of $181,000, Mike's IRA contribution is fully deductible. Since Jane is covered by a pension plan at work and their joint adjusted gross income is under the lower limit of $96,000, Jane's IRA contribution is also fully deductible.

Thus, their AGI is equal to the $84,000 in combined wages less Mike's and Jane's deductible IRA contributions of $4,000 each.

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

[ahugemistake]

thanks quamakazi, I was just confused because I looked at the instructions for form M-1: Do not complete Schedules M-1, M-2,
and M-3 if total assets at the end of the
tax year (Schedule L, line 17, column (d))
are less than $25,000.

https://www.irs.gov/pub/irs-access/f1120fm1_accessible.pdf

but I will stick to the 250K amount.

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

[pracap]

Guys,

What is the difference between M1 reco and E&P reco?
Seems both are opposite to each other!!

[nib]

@ fruitsyrup

What is the correct answer option for Bingo corp
2015 NOL ?

[nib]

@quamakazi


@ahugemistake

I agree with 250,000 amount

Schedule M-1 and M-2 ( Form 1120 ) is required to be filed when a corporation has both total assets and total receipts = >250,000

[nib]

Hello Friends ,

I have following query about simulation question of ” Schedule A – Itemized Deductions
1) what is Point amount for refinance home .

point amt ???

Eg. Wai refinanced her home for 15 years on March 31, 2015; she paid $1,500 in points expense.
she is only able to claim point interest= (($1,500 ÷ 180 months) x 9 months). = 75

explanation=
Line 10: The home mortgage interest is the summation of two components: the mortgage interest amount and the deductible point amount. The “Expenses in 2015 Tax Year” table provides the mortgage interest amount as $6,000 and the point payment as $1,500. Since Wai refinanced her home on March 31, 2015, she is only able to claim $75 in point interest (($1,500 ÷ 180 months) x 9 months). Hence, the total home mortgage interest amount is $6,075 ($6,000 + $75).

[nib]

@ahugemistake

Check URL for IRA limit

https://www.irs.gov/Retirement-Plans/2015-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-Covered-by-a-Retirement-Plan-at-Work

Retirement Plan at Work

1)If you are covered by a retirement plan at work,
AGI
MFJ or qualifying widow(er) |||||||||| AGI =<98,000 |||||||||| a full ded= contribution limit.

AGI 98,000 to 118,000 |||||||||| partial ded
AGI =>118,000 |||||||||| no ded

2)If you're not covered by a retirement plan at work,

MFJ or separately with a spouse ||||||||||| AGI= any amount }|||||||||| full deduction= contribution limit
who is not covered by a plan at work

MFJ with a spouse who is |||||||||| AGI <=183,000 ||||||||||| A full ded= contribution limit.
covered by a plan at work
183,000 to 193,000 a partial ded.
=>193,000 no ded

[Author]

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