[jeff]

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

[LIZZ]

Bass Corp., a calendar-year C corporation, made qualifying Year 4 estimated tax deposits equal to its actual Year 3 tax liability. Bass filed a timely automatic extension request for its Year 4 corporate income tax return. Estimated tax deposits totaled $7,600. This amount was 100% of the total tax shown on Bass's final Year 3 corporate income tax return. Bass paid $400 additional tax on the final Year 4 corporate income tax return filed before the extended due date. Bass was subject to:

A) interest on the $400 tax payment made with tax return.
B? a penalty for underpayment of estimated taxes.

The answer is A only. Why would BASS be subject to interest on the $400 taxes paid? the answer does not explain it.
???? Bass will pay interest on the $400 paid with the return, accrued from the original due date through the date of payment.

the “safe harbor” rules says BASS must pay 100% of prior year tax liability.

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

[LIZZ]

Roger has some free videos on his YouTube page. He talked about the Inside/Outside partnership basis, very helpful.

Roger Videos

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

[Namstut]

@LIZZ, I think the interest is due because the full payment is due on the original due date and not the extension date. The taxpayer filed the extension and paid before the extension due date, however, it was AFTER the original due date, therefore, there is a penalty.

Merry Christmas!

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Namstut]

@dtatham10, I was catching up through the posts and noticed that you had a question about E&P and AAA. The two links, even though are a bit lengthy, they explain it really well. I would highly recommend reading through them and reviewing examples. It gives a very clear picture of the tax treatment.

https://www.thetaxadviser.com/issues/2014/jan/nitti-jan2014.html

https://www.thetaxadviser.com/issues/2014/feb/nitti-feb2014.html

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[HoosierCPA]

MERRY CHRISTMAS!!!!

Hope everyone had a great day. I have been brushing through some flash cards here and there this weekend–only done about 60 total MCQ's. Have my final Christmas party tomorrow then its back on the grind!

@namstut thanks! I'll take a look at that!

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

[HoosierCPA]

@namstut 2 seconds into reading and I got one of my answers:

“An S corporation will have E&P only if it was previously a C corporation or it acquired the assets of a C corporation in a Sec. 381 transaction. An S corporation distribution from E&P is treated as a dividend.”

Now I can rest in peace knowing E&P is a C Corp term only and earnings on the S corp are AAA. Thank you!

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

[Namstut]

Merry Christmas!

@dtatham10 you are welcome! I am glad the links were helpful! I found the explanations to be very straight forward and easy to understand. Examples were great too.

I didn't study for 3 days and I am filled with anxiety. The test in on January 2nd!

I am planning on studying for at least 8 hours tomorrow, then hit all of the Becker SIMs Monday through Wednesday and then just do MCQs and targeting weak areas Thursday through Saturday.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Namstut]

@aatoural,

Outside basis is the partner's basis, which includes beginning capital, % share of the liabilities assumed, % share of the liabilities contributed, all income/losses allocations and distributions.

Inside basis is the corporation's basis for individual partners. It does not include liabilities contributed/assumed by the partner and it can also be increased by the asset additions that were acquired by the partnership using partner's funds.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Namstut]

@dtatham10 I think controlled taxpayers are the ones that have the ownership of more than 50% in the investment and also family members, I always think about it as related parties.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Namstut]

@aatoural The Electing Large Partnership is a partnership with 100 or more direct and indirect partners and $100 mil or more in assets.

I don't know if it's covered by the CPA exam and I do not recall seeing it in Becker but I wonder if it was specifically identified in the question because the termination rules for tax purposes might be different and those with tax background would need clarification in order to answer this question correctly.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[aatoural]

@Namstut – thank you.

Back at it after xmas. Chapter 5 of Becker for me today. I need to reinforce on those Acts of 1933 and 34.

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

[JMG]

For those who used the Gleim sims, how long did it take you to get through them all? I'm just trying to gauge if it's worth paying the $99 based on how much time I have until my exam.

Would you say it would be worth it even if I only get through half of them?

[LIZZ]

@dtatham10 – Take a look at the Becker Chapter Outlines. They are a little more clear than the flashcards sometimes.

Thanks @Namstut I knew there was something small I was missing with that question.

My exam is in 2 weeks I am going to start Becker final review today to nail down the major topics. My plan was to cancel Christmas this year then my best friends father died so I spent the weekend with her. I reviewed my Wiley flashcards and did about 50/ MCQ's a day. I feel sad but recharged. It was therapeutic to just sit on the sofa in front of the fire and cry. Now back on the grind.

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

[HoosierCPA]

@lizz yeah I realized the flashcards for the particular section were much more confusing then they needed to be!

@jmg I finished gleim Sims in under a week and would highly recommend them. When I was working through them I was studying 6-8 hours a day so thats a big reason I was able to work through them so quickly. I think there's 20 Sims with 7 questions in each one (just like the actual exam) and they give you an hour for each one. Most you can finish in a half hour to 45 minutes. I only had 1 That took me the entire time. Hope that helps!

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

[aatoural]

Wait a sec. When I was looking for the SIMS for Gleim the cost said it was 250. Where did I go wrong there?

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

[Author]

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