[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for REG. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[LIZZ]

@RE2PCET

I used GLIM some years back, the way they word things drives me crazy. Its like how the CPA exam uses double negatives it just makes you think more and I need my study material to be straight forward. Use simple terms like “less than” “greater than” not “the portion that does not exceed” crap.

FAR - 05/2015
AUD - 75,11/2014
REG - 07/2015
BEC - 09/2015

[LIZZ]

Notes on Wash Sales:

Wash sales—Taxpayer acquires same
stock or securities within 30 days before or
after selling stock or securities at a loss

Loss not recognized, but added to basis of new
stock or securities

That would be why my +2 is added to the basis !!!!

I just found my answer @aatoural

FAR - 05/2015
AUD - 75,11/2014
REG - 07/2015
BEC - 09/2015

[HoosierCPA]

Always thought this question was weird–who would include their illegal operation income?? And why is it allowed??

Mock operates a retail business selling illegal narcotic substances. Which of the following item(s) may Mock deduct in calculating business income?

I.Cost of merchandise.
II.Business expenses other than the cost of merchandise.

a.Neither I nor II.
b.Both I and II.
c.II only.
d.I only.– CORRECT

Explanation
Choice “d” is correct. A gain from an illegal activity is includible in income. To determine the gain, a deduction is permitted for cost of merchandise. Business expenses for operating an illegal business, other than the cost of merchandise, are not permitted as deduction.

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[aatoural]

Finance lady – yes that is the why. Glad i could help

@dtatham1o – It is. as a matter of fact I got it the first time around incorrect because I said nothing since is illegal activities. Now I started thinking, well expenses can be deducted but no delinquent in his/her right mind would report on tax return what ever illegal activity is doing.

I showed my boyfriend this question and he was like, wth?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[aatoural]

Does anybody has a more simple explanation of difference between outside basis and inside basis of partnership?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[RE2PECT]

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[aatoural]

awesome Re2pect!!!! Thank you

Is that gleim?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[RE2PECT]

@aatoural- It's a screenshot from Roger's book. He gets all the love for his lectures, but I think his books are great. They're much easier to read through than other review courses. I look at Gleim's book and it gives me anxiety lol.

@LIZZ- The only reason I've been using Gleim for my retake is because I was memorizing Ninja's mcq's and people said they have the best sims. I plan on going back to Ninja the last couple weeks before my exam because their questions were more similar to what I saw on my first attempt.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[aatoural]

Under which of the following circumstances is a partnership that is not an electing large partnership considered terminated for income tax purposes?
I.
Fifty-five percent of the total interest in partnership capital and profits is sold within a 12-month period.
II.
The partnership's business and financial operations are discontinued.

I don't have any questions on what statements is correct. i know both are. What is tripping me is what I put in bold. Is there such thing?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[aatoural]

When the AQR partnership was formed, partner Acre contributed land with a fair market value of $100,000 and a tax basis of $60,000 in exchange for a one-third interest in the partnership. The AQR partnership agreement specifies that each partner will share equally in the partnership's profits and losses. During its first year of operation, AQR sold the land to an unrelated third party for $160,000. What is the proper tax treatment of the sale?
a.
The first $40,000 of gain is allocated to Acre, and the remaining gain of $60,000 is shared equally by all the partners in the partnership.
b.
The first $40,000 of gain is allocated to Acre, and the remaining gain of $60,000 is shared equally by the other two partners.
c.
The entire gain of $100,000 must be specifically allocated to Acre.
d.
Each partner reports a capital gain of $33,333.

Correct is A. But what made up those 40k?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[HoosierCPA]

When the property is contributed the partner assumes the basis of 60k but there is an unrealized gain of $40k (100k fmv – 60k basis) the partner doesnt recognized till the sale. At the point of sale the Partner who contributed takes on the first 40k of gain and any remaining gets distributed equally (as the answer states)

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[HoosierCPA]

So without using the technical definition can someone explain a “controlled taxpayer”? My Becker flashcard doesn't make sense to me

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[HoosierCPA]

Actually the R3 flashcards in the category “multi jurisdictional tax issues in federal taxation”are all confusing! @re2pect feel free to explain every one to me 😉 haha

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[Teal]

Anyone else studying on Christmas Day?? Taking off now, but spent the morning trying to get a few problems and videos in 🙂 Merry Christmas!!

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[aatoural]

Merry Christmas!!!!

@dtatham10 – Thanks. The whole tax research thing in R3 I just leave it to common sense which works most of the time. But no flashcards.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Author]

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