[jeff]

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

[aatoural]

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

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

[HoosierCPA]

I swear my brain works in cycles. When it's working right the concepts and material come to me immediately, when it's not…well thats when I ask a lot of questions on here and start doubting how well I'll do on this exam.

Goodwill is subject to the $5k immediate deduction followed by the 15 year amortization? I thought it was just 15 years amortization and not the $5k? I did a quick google and am not seeing the first year $5k.

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

[aatoural]

Let me read Becker paragraph again. Lol. I might be the one how needs a rethink bfore exam.

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

[aatoural]

@dtatham – you are right only the 15 yrs amortization. I got confused with the organizational costs.

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

[HoosierCPA]

ok thanks for looking into that so quick!

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

[r_f_94]

has anyone seen any sims on pensions or life insurance policies? not sure if I would be to comfortable if those where to appear on my exam.

[HoosierCPA]

pensions — never seen

life insurance policies, I could maybe see a question about that.

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

[aatoural]

Somebody has asked about types of reorg. GLEIM SIM 9 question 4 works on it.

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

[Anonymous]

Does anyone struggle with the Like Kind Exchange problems? I've gotten them down but the ones with the boot received and paid are confusing to me. So my understanding is that if you received cash for boot and also paid cash for boot, you do not net those two transaction when trying to figure out the gain to recognize. However, if you got relief of liab for boot and also took on liab as boot paid, then you net the two. Can someone talk it through with me or confirm my understanding on this?

Examples:

FMV new + Boot paid (cash) – NBV old – Boot paid (cash) = G/L realized
1000 + 600 – 800 – 300 = 500 gain realized and recognized

FMV new + Boot paid (liab relieved) – NBV old – Boot paid (liab took on) = G/L realized
1000 + 600 – 800 – 300 = 500 gain realized

Liab relieved – liab took on = net boot received
600 – 300 = 300 gain recognized because lesser of boot received or gain realized.

[Anonymous]

Does anyone know if the volume of people taking the test before it changes adversely affect scoring for us? They say that each candidate's test score is independent but I've heard so many things, I am not so sure anymore.

[wakefern58]

Probably the easiest question that will be asked in this forum for Q1:

On April 15, Year 2, a married couple filed their joint Year 1 calendar-year return showing gross income of $120,000. Their return had been prepared by a professional tax preparer who mistakenly omitted $45,000 of income, which the preparer in good faith considered to be nontaxable. No information with regard to this omitted income was disclosed on the return or attached statements. By what date must the lnternal Revenue Service assert a notice of deficiency before the statute of limitations expires?
a.

April 15, Year 8.
b.

December 31, Year 4.
c.

April 15, Year 5.
d.

December 31, Year 7.

For Statute of Limitations pertaining to 25% understatement of income, it states “Good faith mistakes do not affect this determination”. Does this mean that if the intention was in good faith then the 6 years does NOT apply? Or does the 6 years apply even if it was in good faith? The answer is 6 years from 4/15 but I assumed since it was in good faith that it would be 3 years (the statute for assessments). Thank you!

[wakefern58]

Ignore my question, It's 6 years regardless of whether the intent was in good faith or not.

[RE2PECT]

@AlyCat- I believe you can't net the liability relief if it results in a net boot paid.

So if you give up a mortgage of 50k and take on a mortgage of 100k, then you ignore the boot paid amount.

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

[aatoural]

I just finished GLEIM SIM 11 for Partnerships. The question with the K-1 Schedule that says that Jake is general partner, allocates a 100% of all items in his K-1 regardless of the fact that the partnership was formed between him and somebody else. I had my answers assuming he was 50% only. Does the fact that he was a general partner have anything to do with that? I am confused.

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

[aatoural]

@Re2pect – if that is in reference to exchange of like-kind is not that you ignore boot paid but rather is the net of the liabilities.

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

[Author]

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