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December 2, 2015 at 3:09 am #198722
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February 23, 2016 at 3:59 am #748761
TheodoreParticipantHi guys. I am using the Becker review for the exam and there are a few things that are not clear to me, among one of them is the the like-in-kind exchanges. to figure out the basis the book tells me that is FMV of property received – deferred gain + deferred loss to find out the new basis of the property received, but when I do the MCQ the explanations tell me that it is the adjusted basis of the property given up + gain recognized – boot received + boot paid. Can someone help?
FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBADon't Stop When You Are Tired, Stop When You Are Done.
February 23, 2016 at 6:08 am #748762
Future NinjaParticipantBob Builder is a sole proprietor. During 2015, he incurred the following expenses:
Rental payments for the next 2 years…..$3,000
Country club dues (Bob frequently entertains clients at the country club)…..7,500
Meal expenses incurred while meeting with clients…..1,500What is the amount of Bob Builder’s expenses that are deductible for 2015?
A. $8,250
B. $7,500
C. $4,500
D. $750AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,February 23, 2016 at 6:40 am #748763
AnonymousInactive@ Future ninja first Federal tax refund is not taxable because it is return of your money what you paid.
In the above question prepaid rent should be allocated to the related period , ie it should be expense for next two years not this year.
meals and entertainment allowed upto % so 1500+7500= 9000/2=$4500 would be deductible.
Is answer is C?February 23, 2016 at 6:41 am #748764
nibParticipant@ future
1) Club dues and membership fees. :– You cannot deduct dues (including initiation fees) for membership in any club organized for:
Business,
Pleasure,
Recreation, or
Other social purpose.chek this site for more info,
https://www.irs.gov/publications/p463/ch02.html#en_US_2015_publink1000338562)rent payment deduction required only current year and not future years. So not deducted
3) bob can deduct 50 % of Meal expenses incurred while meeting with clients…..1,500
ans = 750February 23, 2016 at 7:27 am #748765
nibParticipanthttps://www.irs.gov/taxtopics/tc403.html
this irs site shows because interest on insurance dividend left on deposit boxwith the department of veteran Affair is not taxable.
February 23, 2016 at 7:32 am #748766
nibParticipantall
please check my understanding
1) Taxpayer’s state income tax of prev yr is itemized ded
2) Prev yr Itemized ded> std ded
3) Cur yr state income tax refund included in gros income= diff (prev yr itemized ded – std ded )
4) there are many ninja mcq on above scenario———–
below information is new for me .so thanks .State tax refund: 1000
Prior year itemized deduction: 750
750 must be included in GI and the rest of 250 can be excludedFebruary 23, 2016 at 3:45 pm #748767
AnonymousInactiveFebruary 23, 2016 at 4:28 pm #748768
AnonymousInactive@Amor D
Congratulations!! I see it took a few attempts to pass this and I know you're super excited! Use this momentum for BEC!
February 23, 2016 at 6:13 pm #748769
mccorm1202Participant@Rosy0407
To calculate basis for like-kind exchanges that is the correct calculation: FMV of property received – postponed gain + postponed loss.
But the other equation is used to calculate a shareholder's basis in a corporation: Basis of property transferred to the Corp. + gain recognized – boot received + boot paid. Hope this helps!BEC - 74, 73, 73, 79 DONE!!!
AUD - 69, 75
REG - 73, 77 (Lost Credit) 82
FAR - 74, 76February 23, 2016 at 6:16 pm #748770
AnonymousInactiveMemorizing and mastering these formulas helped me answer many MCQs correctly covering LKE:
Realized G/L = FMV (Old) – AB (Old)
OR
Realized G/L = FMV (New) – AB (Old) + Boot Received – Boot PaidRecognized Gain = The lower of Realized Gain OR Boot Received
{Recognize ZERO, if the lower value is below 0;
Remember: Losses are never recognized in LKE}Deferred G/L = Realized G/L – Recognized G/L
Basis (New) = AB (Old) + Recognized G – Boot Received + Boot Paid
OR
Basis (New) = FMV (New) + Deferred L – Deferred GFebruary 23, 2016 at 7:58 pm #748771
AnonymousInactive@Amor D Congratulation on your pass, give us some suggestion how to master the AL for Reg.
February 23, 2016 at 8:07 pm #748772
AnonymousInactive@mccorm1202 In you tube there is free Roger video for the like kind exchange and I find that video very helpful.
In order to find out the value of item what you receiving is to pass the journal entryNew item (what you receiving) Balancing figure
Your liability
Loss
To item you given
To liability you are assuming
To gain realizedFebruary 23, 2016 at 8:25 pm #748773
AnonymousInactiveThanks @Ano.
First, what CPA materials are you using when practicing SIMs?
February 23, 2016 at 9:02 pm #748774
AnonymousInactiveI have YAEGER and Ninja mcq
February 23, 2016 at 9:54 pm #748775
AnonymousInactiveI was using Becker and NINJA for REG and my NINJA has already expired last month.
As far as the interface of the Research Tab, Becker's AL resembles really close to the AICPA actual test software.During the preparation time from my recent attempt, I decided to familiarize myself with the AL functionality since it's going to be sure 1/6 point out of the 40% portion (SIM) of REG.
I created my own outline and laid out the table of contents.
Table of Contents
Authoritative Literature
-IRC
-AICPA Professional StdsIRC
-Subtitle A – Inc. Taxes 0001 – 1564
B – Estate & Gift Taxes 2001 – 2801
C – Employment Taxes 3101 – 3510
D – Misc. Excise Taxes 4001 – 5000
E – Alcohol, Tobacco, & Certain Excise Taxes 5001 – 5891
F – Procedure & Admn. 6001 – 7874
G – The Joint Committee on Taxation 8001 – 8023
H – Financing of Presidential Election Campaign 9001 – 9042
J – Coal Industry Health Benefits 9701 – 9722
K – Group Health Requirements 9801 – 9834AICPA Professional Stds.
-Tax Svcs [TS]
-Section 100 P – Tax Return Positions
200 A – Answers to Questions on Returns
300 C – Certain Procedural Aspects of Preparing Tax Returns
400 U – Use of Estimates
500 D – Departure from Position Previously Concluded in an Admv. Proceeding or Court Decision
600 K – Knowledge of Error: RPAP [Return Preparation & Administrative Proceeding]
700 F – Form & Content Advice to TPsSubtitle A – Income Taxes 0001 – 1564
Chapter 1 Normal Taxes & Surtaxes 0001 – 1400
Chapter 2 Tax on Self-Employment Income 1401 – 1403
Chapter 3 WTax NRAs &Foreign Corps 1441 – 1465
Chapter 4 -Repealed-
Chapter 5 -Repealed-
Chapter 6 Consolidated Returns 1501 – 1564 -
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