[jeff]

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

[WANT2BTXCPA]

I test tomorrow. Praying for a passing score the first time around.

[jeff]

Test Your Might.

To keep the answers all in one place, please post in the FB thread to enter.

[aatoural]

I need serious help with the Securities Act. It is VERY frustrating. I just do not understand most of it. Does anybody have or uses a good source for this part?

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

[thebigguy1992]

if I'm using the july 2016 ninja reg book, am i using the latest version or were there changes?

[wakefern58]

For anyone with some S Corp Knowledge: What is the best way to determine what is Ordinary (Non separable Income) & Separable Income. Is the best thing to do is just look at the items on the K1 and anything not on that would be considered separable?

Here's a question example, I just need to know where I can find how to distinguish the two because the review book doesn't quite list this but perhaps I am just looking at it incorrectly.

An S corporation had the following income and expenses:

Sales

$240,000

Rent expense

25,000

Entertainment expense

5,000

Interest income

1,500

Contributions to qualifying charities

600

Section 179 expense

3,000

Depreciation expense

1,800

What would be reported as ordinary income on the corporation's income tax return?

[jack yassa]

@wakefern58
It's already in Becker REG3-50

Sep Stated item is ;
Divided Income
Interest Income
Capital G/L Sec 1231
Charitable Contribution
Sec 179
G/L from the sale of Collectibles

240,000
<25,000>
<2,500>
<1800>
===============
210,700

Regards.

[Namstut]

@wakefern58 Ordinary income is exactly what it is – income from operations, and expenses related to a normal course of business.
It's income directly related to operations (manufacturing, sales, services) and expenses incurred to produce this income (salaries to employees, their insurance, office rent, normal depreciation expense of your assets used in business, repairs and maintenance, travel, meals and entertainment, advertising).

Interest income, royalties, dividend income are both portfolio income, this income is not derived from normal operations but rather from investments.

179 is not an “actual” expense incurred in the course of business

Charitable contributions are not in any way related to producing your ordinary income.

This is probably the most simplified explanations but I hope it makes sense.

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

[JMG]

Anybody else attempting another exam at the end of this window? I'm scheduled for BEC but when I'm done with REG, I'll only have 5 weekends to study. Not sure if that is sufficient to pass but might just give at a go anyways. For those who have taken BEC, is 5 weekends doable?

[aatoural]

@JMG – I have FAR the last day of the testing window. Only have 1 months and half to pull it off. Don't feel discourage it can be done.

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

[HoosierCPA]

So I stopped in to say its been quiet on here lately but apparently I stopped getting email notifications when everyone is posting! Anyone got a test this week?

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

[HoosierCPA]

Depreciation–whether its regular, macrs, section 179, 1245 and 1250 recaptures.

For those items, what gets lumped into ordinary income and whats separately stated? This might even change depending on if we are talking about Partnership, S Corp, C Corp…

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

[aatoural]

Capital gains and losses, Section 1231, Section 179 deduction, unrecaptured income 1250 (1245). are separately stated items

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

[HoosierCPA]

dang, still not getting email notifications…I wonder what's wrong?

@aatoural thanks! I'm finishing up chapter 7 and moving to chapter 8 tonight in Becker. After working through all that B-law I start to get anxiety I am forgetting my tax material. I can't seem to keep everything in my brain at once!

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

[aatoural]

Dtat – try doing at least 1 set of 20-20 mcqs on the tax material everyday you study law. THat is how I keep it fresh

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

[HoosierCPA]

@aa yeah I should probably start doing that. I used to do a progress test weekly and for some reason I decided to try and pound through the questions and skip the progress tests all together…not a good decision for my anxiety!

Going into your final review where are you devoting your attention? I need to find more material on estate tax. Becker doesn't provide much….Also, at risk always seems to be something that comes back and bites me and this is also something Becker touches very little on. All I can find it that the difference between basis and at-risk is at risk does not include non-recourse debt. Also, at-risk applies to partnerships, s-corps only?

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

[Author]

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