[jeff]

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

[RE2PECT]

Is anyone bothering to memorize all the types of corporate reorganizations? I know the concept behind most of them, but get tripped up whether they're Type A, B, C etc.

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

[Anonymous]

@re2pect, I've only encountered questions on type A,B and C. Easy way I remember is Type A is mergers/consolidation, B is stock for stock, and C is stock for assets. I am not bothering with the other types.

[LIZZ]

Going in for my test today. They put out a winter weather warning in Atlanta today but just called prometric and the testing site, they are open for business today closed tomorrow. Bad call on prometric I think, they don't understand how Atlanta people flip out with snow and black ice on the ground… Packing my Fiat with servival gear and heading to testing center early.

Good luck everyone and thanks for your help !

⛄⛄

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

[HoosierCPA]

@lizz Drive Safe! good luck! We are all pulling for you!

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

[aatoural]

Good luck Lizz.

Guys Wiley is offering a webminar on tips to pass REG n BEC bfore April. If you like to listen go register at Wileys website. I tried to post link but it doesnt go through.

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

[aatoural]

Good luck Lizz!

Here is a link for a webminar Wiley is doing next Tuesday about passing REG bfore April. I don't know if it helps but if you want to listen. Here it is. 🙂

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

[aatoural]

I guess it did post.

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

[wakefern58]

Could someone clarify what Becker means for AMT add backs here when it states: “Med expenses must exceed 10% of AGI (adjustment for taxpayers 65+). No adjustment needed for taxpayers under 65.”

Does “no adjustment needed for taxpayers under 65” mean there are NO ADD BACKS for med expenses unless the taxpayer is 65+ (Add back 2.5% to the regular 7.5% to get 10%). There are only ALLOWABLE itemized deductions allowed for AMT which is any amount exceeding 10% of AGI.

Is this correct?

[HoosierCPA]

haha this AMT won't go away! @wakfern58 sounds like you have it correct. I had a mini example above that I think should help:

20k medical expenses 100k adjusted gross income:

1) Normal Taxable Income for >65 years:
20,000 medical expenses – (20,000 (100,000 x 7.5%)) = 12,500

2) Normal Taxable Income for <65 years:
20,000 medical expenses – (20,000 (100,000 x 10%)) = 10,000

For AMT purposes you add back the additional 2,500 benefit you get for being old (12,500-10,000). This means you are still allowed the $10,000 deduction that a <65 year old would have its just that additional 2,500 that's not allowed.

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

[wakefern58]

@dtatham10

I appreciate the explanation, I wanted to make sure I had it down right because I am tired of looking at AMT haha. All the other threads didn't have anything clear on this so it's evident that it trips up a lot of people. If the book just clarified and explained it right, I think it wouldn't be such a hassle. Thanks!

[HoosierCPA]

@wake no problem! It's a confusing topic I still get tripped up on the little details.

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

[JMG]

So I came across an MCQ in Ninja about treatment of goodwill for C corps, didn't really remember reading anything about it in Becker. The explanation said that impaired goodwill is added back to taxable income and then the full goodwill amount is amortized over 15 years (deduct current year portion). Is there anything else about goodwill we need to know or is that pretty much everything?

[RE2PECT]

@AlyCat- Yea I'm not wasting time on that when there's more important things I need to focus on.

@LIZZ- Good luck! Let us know how it went.

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

[HoosierCPA]

@JMG hmm I'm not sure I knew the impaired goodwill rule. Can anyone elaborate on that?

You have 10k in goodwill you've been amortizing over 15 years..in year 2 you find out its impaired by lets say 2k. From a book income perspective you would expense that impairment but from a tax perspective that deduction is not allowed so its added back? Then from year 2 forward you would continue to amortize off the new impaired basis?

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

[aatoural]

Becker has goodwill together with smortization like JMG says. You can deduct up to 5k in current year and amortaize the rest over 15 years. The only other thing in Becker is that is an add back or substract in schedule M1 reconciliation. It is in the table Becker has for M1 reconciliation.

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

[Author]

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