[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

[Claudia408]

@atx15 – are you memorizing the answers or really understanding why they are wrong/right? also, you should really try to work on your weak areas and push yourself on those and you'll pass. you're already very close. I didn't get my first pass until my 5th attempt, you really have to keep at it and study smart. also, i personally didn't like Wiley – i switched to Roger and supplemented w Ninja MCQ.

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

[marqzho]

Claudia408:

Initial Contribution + %income – Distribution + liability assumed by partner – Liability Contributed to the partnership = Net Basis

So, $10000(Initial Contribution) +$5000 ( liability assumed by partner) +$8500 (%Income) – $3000 Distribution – $2000 (reduction of liability assumed by partner) = 18,500

Remember, Partner basis = the amount at risk

A)if partnership borrows money – your “at risk” amount goes up by %
B)if your own debt is assumed by the partnership – your “at risk” amount goes down by the whole debt amount and then it goes up by % because of A

REG 90
FAR 95
AUD 98
BEC 84

[jbarbarito]

Can anyone explain the “Mom and Pop Exception” for Passive Activity Losses? In Beckers R1 lecture, it is stated that these losses can be deducted against wages, dividends ect. but aren't passive losses only deducted against passive income? Thanks!

BEC- 75
AUD- 84
REG- 81
FAR-

[atx15]

@Claudia408, that is really what I'm trying to figure out. With AUD, I think a lot of the answers I just had memorized. With BEC, I really tried to work through each problem and talk through each answer and the reason it was right or wrong. The areas I was weak in, I would go back and review the area in the text. When I sat for AUD, I felt like I could narrow the answers down fairly quickly and easily. When I sat for BEC, I felt like each question was so foreign to me. There were so many questions that I couldn't even narrow the answers down for, which scared me because I really thought I understood the material.

AUD - 72, 83
BEC - 71
REG - 74, 77
FAR - Aug 2016

[nib]

@hokinizeu:

Thnks for post .

I have recorded notes using Samsung mobile . But to my surprise , sounded boring ,unclear ,sometime slow , sometime very fast. Any other idea ?

2nd thing how to utilize the IRC when solving problems ?

[Anonymous]

Hi jbarbarito……

I study with Becker too……Here is what i have learned.

Passive losses only apply to passive income (you are correct)
Mom and pop exceptions refers to…husband and wife joint venture….Where they may elect to file jointly instead of partnership tax return (form 1065). by doing so, they combine all costs and expenses as they were operating their own businesses.

What do you think?

[MOAC]

@jbarbarito I have just started reading R1 too and I use Becker as well. Here is my take on it.

Mom and Pop exception is about individuals are actively managing the property. They look after the property and tenants. They're not those owners who just collect the rent and don't renovate, paint, etc their rental homes. It becomes active property instead of passive property.

FAR May 2012 81 (lost credit, didn't sit for other sections.)
FAR 86 Aug 2015
AUD 85 Nov 2015
BEC 84 Dec 2015
REG 78 Mar 2016

Passed ALL sections in first attempt!!

[marqzho]

@jbarbarito

That's why they are called exception =)

REG 90
FAR 95
AUD 98
BEC 84

[Anonymous]

S corp. question…..

Anyone can help please?

Boles Corp., an accrual-basis calendar-year S corporation, has been an S corporation since its inception and is not subject to the uniform capitalization rules. In the current year, Boles recorded the following:

Gross receipts $ 50,000
Dividend income from investments $5,000
Supplies expense $2,000
Utilities expense $1,500

What amount of net business income should Boles report on its Form 1120S, U.S. Income Tax Return for an S corporation, Schedule K?

a.$53,500

b.$46,500

c.$48,000

d.$53,000

My answer: Reason…..S corp reports both separately stated and non-separately stated items in income.
S copr include portfolio income (interest, dividends, ryoalties, and all capital gain and losses)
$50,000 + $5,000 – $2,000 -$1,000 = $53,000

Testbank answer:
$50,000 – $2,000 -$1,000 = $46,500

Why, excluding Divid income?

[marqzho]

The question is asking for net business income which is indeed asking for income from non-separately stated item. Portfolio income are all separately stated item

REG 90
FAR 95
AUD 98
BEC 84

[Future Ninja]

rise and grind.

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

[nib]

@ berlin97

1)S corp report business related income and expense in 1120 .
2) S corp prepare K schedule and K-1 schedule .
2) Total dividend income goes to K SCHEDULE as pass through income .
3) Then s corp prepare k-1 schedule pertaining to each individual shareholder and sent to them .
.4)When each individual will receive k-1 schedule ..Dividend income amount mentioned in k-1 SCHEDULE would be taxed at individual tax rate in 1040 individual tax return form .

I have tried to explain with my understanding .

[Anonymous]

bin

This is a perfect analysis!

1120S….K-1….Pass through income to shareholders…..Then, Sharehorlders pays taxes on divid. inc.
Does this apply to investment inc. as well?

thanks

[Claudia408]

hope this isn't too general of a question….how is everyone getting the gain/income/basis straight for C Corp, S Corp, Partnership? is there some sort of matrix table that can help get it straight in my head? i'm getting confused and i just keep flipping back and forth in my book.

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

[marqzho]

Claudia408

Instead of asking for one of those, why not set one up yourself?

I think this could be a very good exercise.

REG 90
FAR 95
AUD 98
BEC 84

[Author]

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