[jeff]

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

[RE2PECT]

@aatoural- Try not to get discouraged by Gleim's mcq's. They are much harder than the actual exam and test you on a bunch of stuff you probably don't need to know. I remember that farm question you posted and just guessed it and kept going.

My first crack at the sims was similar to your scores. Since I started them again I've seen at least a 10-15% increase for most of them. I spaced them out long enough so I don't feel like it was because I remembered the answers, although a few I remember the process of how to solve them. It's encouraging to see that I'm starting to feel more comfortable with the sims since that's why I failed last time. I just pray I get lucky enough to have some that I'm fairly comfortable with and not on some obscure topics that no amount of preparation would help me.

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

[aatoural]

As I was doing corporate SIM 7 yesterday night. After I was done and I saw the mistakes I actually felt I had an improvement towards understanding in better detail M-1 and M-2 and how the addition and substractions work to reconcile book and tax income.

I do feel they all have a twist more I do like that. I feel like is building my confidence more than when I sat first for exam.

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

[RE2PECT]

I need to work on the M-1 adjustments also. I understand the concepts, but sometimes I get confused if it gets added or subtracted. I remember that sim and I had the correct number on a couple of them, but got them wrong because I either had it as a positive or a negative when it was the opposite.

One trick I've been doing when reviewing my sims is using the split screen. It saves a lot of time of having to switch back and forth between your answers and the solutions.

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

[HoosierCPA]

With schedule m-1 and E&P I just try and think of it as logically as possible rather then memorizing a list of add backs and deductions. M1 goes from Book income to Taxable Income and E&P goes from Taxable Income to Book Income. If you know the rules on what is a tax deduction and what's not then for the most part you can hold your own (i.e federal tax is calculated in book income but not taxable so for the m1 its an add back but for e&p its a deduction)

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

[aatoural]

One thing I as able to pick up from schedule M1 was that all those amounts that are recorded in the books but not in the income tax that are to be added back (except federal taxes, capital loss, installments, and advances) is 99% the same as what is supposed to be subtracted in the list of items included in tax income not in the books. So that kind of makes it easier because all you need to know is which one higher if book higher amount it gets added, if tax amount is higher it gets subtracted. I don't know if it make sense but if you look at Becker page R3-26 the table you'll see what I mean

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

[RE2PECT]

I don't have Becker so I can't reference that table. Roger doesn't go into too much detail in his book with M-1. That's probably why I'm having trouble with it lol.

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

[aatoural]

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

[aatoural]

https://i1150.photobucket.com/albums/o602/aatoural/m1.png

let me know if link works for you @re2pect

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

[HoosierCPA]

Quickly glancing at my flash cards. Calculating gain/loss on donees gift

Gain — Carry over basis is used

Loss — FMV is used

I guess I'm spacing this rule–I thought if you are given a gift you assume the donors carryover basis no matter what to calculate the gain or loss.

So if you gave me a 100k give that you paid 50k for and then I proceeded to sell it for 20k I take a 80k capital loss and not a 30k?

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

[aatoural]

Nevermind it came up 🙂

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

[aatoural]

@dtatham10 – don't forget there is an exception when FMV is lower than basis at the date of gift.

In that case if donee sales asset higher the basis, you asume the original basis and gain.
If donee sellss for less than FMV, then FMV is basis and donee has a loss
If donee sell in between original basis and FMV, then no g/l recognized by donee and assumes in between basis (salling price)

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

[cpaMD86]

@dtatham10

This is what I recall regarding gifts from Roger's lecture…

Let's say the Basis is 50 and FMV is 40

If you sell it for 60 then you calculate it using the c/o basis, so you would have a gain of 10. If you sell it for 30 then you use the FMV and would have a 10 loss. If you sell it for anything in between 50 and 40 no gain or loss…

I believe this is the same subject…lol

—- 50 C/O
–
–
– No Gain Loss
–
–
—–40 FMV

FAR: 9/3

[HoosierCPA]

@aa ok I knew the between basis and FMV rule, and I knew the gain is recognized when you sell above FMV by taking the sale – basis…what I didn't know if you sell below both the basis and FMV you calculate the loss by taking the sale – FMV. I don't think they have a lot of mcq's over that scenario.

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

[cpaMD86]

looks like @aatoural came in at the same time!

FAR: 9/3

[HoosierCPA]

@cpamd ok you gave a slightly different example. Yours shows the FMV below Basis at the time of the gift. Which makes sense in my head you would take the smaller loss when you sell below both FMV and Basis by taking the sale price – fmv.

With my example when you have a FMV above Basis at the time of gift and you proceed to sell below BOTH FMV and Basis I feel like you should take the Selling Price – Basis so you have a smaller loss. The way my flash card reads makes it sound like you should take the FMV. Almost feel like it should say for a loss you take the lesser of the FMV or Basis to calculate your loss.

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

[Author]

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