[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

[Anonymous]

Let's say this is your AL task:

Linda Hall, CPA prepare the annual Form 1065 for Florida Partnership. She plans to use an estimate made by Florida Partnerships when she prepares the tax return. She wants to know whether she needs to disclose to the taxing authority the use of the estimate in the return. Where will Linda find guidance on the disclosure requirements?

Using the table of contents that you have already mastered, you know it in your heart where would this section be found.
Hmmm, AL has two sections, it can only be under AICPA PS or Tax Services.
TS standards have 7 sections:
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 TPs

Obviously, it should be under the folder of Section 400 of SSTS -USE OF ESTIMATES, which has only seven sub-folders.
Let's browse through the entire sub-folder and sections…..Bingo!
SSTS or TS-400-07
7. Specific disclosure that an estimate is used for an item in the
return is not generally required; however, such disclosure should be
made in unusual circumstances where nondisclosure might mislead
the taxing authority regarding the degree of accuracy of the return as a
whole. Some examples of unusual circumstances include the following:
a. A taxpayer has died or is ill at the time the return must be
filed.
b. A taxpayer has not received a Schedule K-1 for a pass-through
entity at the time the tax return is to be filed.
c. There is litigation pending (for example, a bankruptcy proceeding)
that bears on the return.
d. Fire, computer failure, or natural disaster has destroyed the
relevant records.

[Anonymous]

@ Amor D thank you for explaining very well.

I remember that you are telling about at risk basis question .do you have anything for this.

[Anonymous]

No, I still don't have a good grasp of that topic. That's probably the reason why my score was only 76.

[Future Ninja]

@Amor D – I AM SO HAPPY FOR YOU! tips tips REG please. pay it forward! ^_^

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

[Anonymous]

@Future, you just don't know. I didn't have sleep till 7am this morning and KY scores don't pull up till after 8am EST on the actual score release date. But I was so worn out for staying up all night.

I fell asleep like having a shallow sleep and then I had this nightmare. I had some friends I invited over to watch me pull up the screen so they can also see my score. The score showed 17, as in SEVENTEEN. It felt so real and I woke up around 8:30 knowing the scores were already up, I was scared of getting up. Then I realized it was only a dream. I was so thankful it was not for real. However, it made my knees tremble getting up and going to the bathroom. I was shaking when I walked up to my computer. I knew, I knew, the chance of failing was more probable than passing. Besides, I've gotten so used of failing (8 failures in several months for REG and BEC side by side).

When 76 pulled up, well, I guess I finally passed this time.

I am very grateful!

[Future Ninja]

@Amor D – all we need is 75! Excess is just a bonus!

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

[sva_123]

Congrats Amor D!

AUD: Pass (July 2015)
BEC: Pass (Nov 2015)
REG: Pass (Feb 2016)
FAR: Pass (June 2016)
Ethics: 100%

Becker self study and Ninja 10 pt combo

[Theodore]

@Amor D Congratulations!!! My exam is on Monday and Im just hoping for a 75. That's all we need. Thank you for the explanation on LKE

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

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

[nib]

wow amor D

CONGRATS …….

All the best for next exam .

[nib]

hello friends ,

What is the rule for C corporation to use accrual method ??? I need confirmation for the amount is 5 or 10 mil.

A C corporation with sales over $5 million must use the accrual method of accounting.
Or
A C corporation with sales over $10 million must use the accrual method of accounting.

[nib]

future

pls provide answers when you post question .
i have tried following question. but need to know if it is correct or not .

Flowers, a married taxpayer,purchased an annuity for $64,400 that will pay $700 per month over the life of Flowers and Flowers’s spouse.
At the time of purchase, the couple’s joint life expectancy was 23 years. Flowers received payment beginning April 1, Year 1, amounting to $6,300 in the first year of the annuity contract.
How much is includible in Flowers’s gross income in the first year?

A. $0 ,,,B. $2,100.,,,C. $4,200,,,,D. $6,300

My answer=c= 4200

Cost of annuity= 64400*9/(23*12) =2100 find out annuity cost over 23 years and then application for 9 months ( from april to December )

Annuity taxable= 6300-2100 = 4200

[nib]

@Bennyhana21

A husband and wife agree to split monetary gifts to their relatives. The husband gives his daughter $22,500, and the wife gives her niece $19,000. The annual exclusion is $14,000. What amount is the taxable gift for the husband and wife?
A.$0 ,,,,Incorrect B.$13,500 ,C.$17,000 ,D. $37,500
Why is the answer A, $0 taxable?

Exclusion limit , Per donee 14000 for single and 28000 for MFJ
1) daughter -22500<28000,,
,2)19000<28000 .
Both gifts are below exclusion limit .
So taxable gift= 0

[ncjm304]

Can somebody please explain to me if the DRD is a book tax difference? In Roger's lectures, he says on the M-1 you are reconciling book income to the taxable income before special deductions. This makes sense as line 10 of the M-1 (income) should agree to page 1, line 28 of the 1120 (taxable income before NOL deduction and special deductions). However, I came across a NINJA question where the DRD was included as an M-1 adjustment. Could somebody help clear this up for me?

Thanks so much!

AUD- 71,79
BEC- 72,77
FAR- 83
REG- 63,71,83

DONE!

[pracap]

Hi Guys,
I wrote REG on 14th and got score as 70. This was my first REG exam, I've passed the other 3.
I thought I will share my experience.

1. MCQ questions: doable – I did becker and Ninja mcqs.But felt, one need to get perfect clarity on taxation rules for different entities, else people will waste precious time on mcqs.

2. SIMS – Were brutal. Both Ninja and Becker were no way near that. To solve those, one need to master the concepts and IRC rules. All should pay attention to the fact that, just by doing tons of mcqs will not help to solve sims in the allotted time unless you master the text book. I recommend, read text and go through IRC structure.

[nib]

hello friends ,

My query is about additional tax paid by bass .

1)Is this extra tax amount that is paid more than required by bass. So it should be refunded by IRS in future .
2)I thought bass should receive refund and interest from IRS in future .
But here ,I am not understanding why bass will pay interest on this additional tax paid .

mcq:
Bass Corp., a calendar-year C corporation, made qualifying year 2014 estimated tax deposits equal to its actual 2013 tax liability. On March 15, 2015, Bass filed a timely automatic extension request for its 2014 corporate income tax return. Estimated tax deposits totaled $7,600. This amount was 100% of the total tax shown on Bass's final 2013 corporate income tax return. Bass paid $400 additional tax on the final 2014 corporate income tax return filed before the extended due date. Bass was subject to:
I. interest on the $400 tax payment made with tax return.
II. a penalty for underpayment of estimated taxes.

Ans= I . interest on the $400 tax payment made with tax return.

explanation :
Since Bass Corp. made estimated tax deposits (which totaled $7,600), and this was 100% of the total tax shown on Bass' final 2013 corporate income tax return, Bass will not have to pay a penalty for underpayment of estimated taxes.
A “safe harbor” provision allows that no penalty for underpayment of estimated taxes will be imposed on a corporation if the estimated tax deposits equal the lesser of 100% of the current-year tax or 100% of last year's tax.
Bass will pay interest on the $400 paid with the return, accrued from the original due date, March 15 through the date of payment.

[Author]

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