[jeff]

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

[RE2PECT]

@ Namstut- I messed around with cpareviewforfree with AUD and BEC, but I wasn't really a fan. It's decent practice for free questions, but they asked about a lot of stuff that the main review courses don't even mention. I haven't tried it for REG so I can't speak for how similar they are to the actual exam.

If you want to practice more mcq's, then I would go with Ninja. Their questions are more in line with what you'll see on the actual exam. They're pretty straightforward for the most part and have great answer explanations.

If you scored weaker on sims and want more practice, then use Gleim. I haven't tried Becker, but Gleims's are much harder than Ninja or Roger. The software and AL is pretty much identical to the actual exam and they have plenty of sims to practice. Just don't do any mcq's because they will pretty much ruin your confidence right before your exam lol.

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

[jeff]

1) Ignore Dodd-Frank
2) Use 2016 tax law
3) Use AICPA-licensed questions 🙂

[LIZZ]

@NAMSTUT

Most major CPA study programs use AIPCA-licensed questions so the questions are the same. The difference is the format and how they explain the answers. For example Ninja (which i love) has a great format, Mixed MCQ's and easy to learn from your mistakes by reading the answer plus the links to the ninja text. I also like that when you do MCQ's questions you previously seen pop up so you can really nail down the concept.

I usually do Wiley questions while I'm in the passenger seat of the car. I highlight all the correct answers and try to figure out why the WRONG answers are WRONG.

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

[aatoural]

@JMG – I feel like I have covered everything and around 90% feel comfortable. However I do need more emphasis on individual stock options, Schedule M1, what adds or substract to C corps E&P, and Securities act. Those topics still trip me up. I spent all day yesterday going through chapters 1-4 trying to reinforce before I start with Gleim that has a very high reputation for being too hard lol. I want to do as much as possible to pass on the 23rd and then be off to FAR on March 10th. Hopefully I make the mark. I am freaking out about it but I really don't want this journey to be worsened by the new exam.

@Namstut – I think looking at a different way to word the exam is always a good way to see if you have the concepts well grasped. I feel with Becker as if I already know the answers to many of the questions, but don't feel discouraged. Just make sure you understand the concepts. Becker is very right on point with the exam to my experience.

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

[HoosierCPA]

So I started to research it last night and never got around to it! Now I'm back at work and not near my study material. For estate tax. In the year of death what's the general rule on what gets included in the estate vs final individual tax return of the descendant? For instance, if they are receiving dividend income and a portion of that dividend income comes in before death and a portion comes after death is it all included on the estate or indiv return? Or split between the 2?

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

[aatoural]

@dtatham – I have some issue with that too. I am going to do some research as well

Does anybody know the Score Release Timeline for Q1 2017?

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

[dontmakemeaudityourass]

I took Reg yesterday and I had two questions that Im not sure If i got right.
edit: watch exam disclosure please

[dontmakemeaudityourass]

[HoosierCPA]

@dontmakemeaudityourass well first blush I would say corps can't immediately recognize any capital gains/losses in the year of initial loss. If it's not the initial year I'm spacing on the rules when partial ownership..I would GUESS they could take their % of the ownership. Partnership rules are a little different, they have passthrough treatment, where the loss is carried over to the owners. This would take on the passive income/loss rules. They first would reduce their basis by the loss, then further limit the loss by the at risk rules, then they would be even further limited to only be able to offset the passive loss against passive income.

Hope this makes sense, it's a little scattered!

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

[RE2PECT]

@ aatoural

https://blog.aicpa.org/2016/12/cpa-exam-q1q2-2017-score-release-timetables.html#sthash.iM08FY4e.dpbs

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

[aatoural]

Thank you @Re2pect

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

[HoosierCPA]

This is such a small set of questions in becker I tend to overlook it (3 total questions):

Davis, Inc. has had an average annual gross receipts of $15 million during Years 1 through 3. During Year 4, Davis pays $9,250 for repairs and improvements on a building it owns with an unadjusted basis of $700,000. The costs do not qualify as routine maintenance. Under the safe harbor rules, how much can Davis deduct as repairs and maintenance in Year 4?
a.$0 — CORRECT
b.$500
c.$9,250
d.$5,000

Explanation
Choice “a” is correct. Davis is not a qualifying small taxpayer because the average annual gross receipts during the preceding three years are not below $10 million. The building is a qualifying building because the unadjusted basis is below $1 million. But that is not relevant because the taxpayer is not a qualifying small taxpayer. Therefore, the only safe harbor for Davis is the routine small maintenance, and the facts tell us that the improvements do not qualify. Consequently, Davis may not deduct any of these amounts under the safe harbor rules in Year 4. (Note: Because Davis will not qualify under the safe harbor rules, the normal rules will apply. Therefore, the costs must be capitalized if they result in a betterment, adaptation, or restoration of the unit of property [UOP].)

I understand the qualifications. What I'm trying to figure out is what makes these R&M items different from your typical R&M. The sentence “The costs do not qualify as routine maintenance” is the indicator that these are R&M items that improve the asset which means they fall under capitalization treatment as long as they meet the qualifications above??

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

[aatoural]

I don't know if this asnwers your question.

The de minimis safe harbor provided under § 1.263(a)-1(f) was intended as an
administrative convenience whereby a taxpayer is permitted to deduct small dollar expenditures for the acquisition or production of new property or for the improvement of existing property, which otherwise must be capitalized under § 263(a). The de minimis safe harbor does not limit a taxpayer’s ability to deduct otherwise deductible repair or maintenance costs that exceed the amount subject to the safe harbor. The safe harbor merely establishes a minimum threshold below which all qualifying amounts are considered deductible. Consistent with longstanding federal income tax rules, a taxpayer may continue to deduct all otherwise deductible repair or maintenance costs, regardless of amount.

https://www.irs.gov/pub/irs-drop/n-15-82.pdf

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

[aatoural]

@dtatham10 – Hope this helps too

https://www.irs.gov/pub/irs-pdf/p559.pdf

The decedent's income includible on the final
return is generally determined as if the person
were still alive except that the taxable period is
usually shorter because it ends on the date of
death. The method of accounting regularly used
by the decedent before death also determines
the income includible on the final return.

If the decedent accounted for income under the
cash method, only those items actually or constructively
received before death are included
on the final return.

Generally, under an accrual method of accounting,
income is reported when earned.

All income the decedent would have received
had death not occurred that was not properly includible
on the final return, discussed earlier, is
income in respect of a decedent.

Income in respect of a decedent must be included
in the income of one of the following.
The decedent's estate, if the estate receives
it.
The beneficiary, if the right to income is
passed directly to the beneficiary and the
beneficiary receives it.
Any person to whom the estate properly
distributes the right to receive it.

An estate is a taxable entity separate from the
decedent and comes into being with the death
of the individual. It exists until the final distribution
of its assets to the heirs and other beneficiaries.
The income earned by the assets during
this period must be reported by the estate
under the conditions described in this publication.
The tax generally is figured in the same
manner and on the same basis as for individuals,
with certain differences in the computation
of deductions and credits, as explained later

Gross income of an estate consists of all
items of income received or accrued during the
tax year. It includes dividends, interest, rents,
royalties, gain from the sale of property, and income
from business, partnerships, trusts, and
any other sources.

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

[HoosierCPA]

@aatoural GREAT, both posts will be a huge help. I was suspecting income received before was included and after death was part of the estate I just couldn't seem to find anything that directly said it!

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

[Author]

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