[jeff]

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

[cwlanders]

I will be taking REG on March 10th. I use Becker and Ninja MCQ's. As soon as I take FAR on February 6th I will begin studying for REG. It will be tough cramming all of the material into one month of studying but it will hopefully be my last exam so I will be extra motivated to get it done. Good luck everyone!

BEC - 91 (2/29/16)
AUD- 74, 74

[HoosierCPA]

@cwlanders good luck! That's a tall task!

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

[HoosierCPA]

Easel Co. has elected to reimburse employees for business expenses under a nonaccountable plan. Easel does not require employees to provide proof of expenses and allows employees to keep any amount not spent. Under the plan, Mel, an Easel employee for a full year, gets $400 per month for business automobile expenses. At the end of the year Mel informs Easel that the only business expense incurred was for business mileage of 12,000 at a rate of 30 cents per mile, the IRS standard mileage rate at the time. Mel encloses a check for $1,200 to refund the overpayment to Easel. What amount should be reported in Mel's gross income for the year?

a. $3,600
b. $4,800 — CORRECT
c. $0
d. $1,200

I actually don't have a question on the answer. My question is what would the tax treatment be for the amount returned to the employer? Would you report the entire $4,800 and then have a corresponding deduction to arrive at AGI for $1,200?

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

[aatoural]

I saw that question last weekend, and I was wondering the same thing but I forgot to post it.

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

[Anonymous]

I need your help guys.

I am planning to retake REG sometime in mid or last week of Jan.

Can you explain or point me to material or thread where I can find the below information.

1. What amounts has to be included in the W2 . For example salaries, bonuses,commissions, etc and what has to be excluded like health insurance, retirement benefits, 401, etc. Still I don't understand what amounts will be included and excluded from the employee stand point.

2. Also how you calculate the after tax cash flow for the employer for that employee . If the employer pays salaries,bonus,commissions, 401 K, health insurance,Stock options,vacation,ESPP, etc. What will be after tax cash flow for that employee for the employer .

3. At risk amount vs passive income/loss. How you deduct a normal loss and passive loss. Still didn't get the whole concept. Any thread or material to understand this one will be great.

Thanks in advance for the help.

[HoosierCPA]

For IRA's:

“Where a spouse is an active participant in an employer retirement plan, the allowable deduction to arrive at AGI is phased out…”

What's an “active participant”?

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

[Teal]

For trusts since extraordinary items have been eliminated, do the remaindermen still technically have the responsibility for “extraordinary” income and expenses? (Like maybe they are just not called that anymore, but are still the same inc/exp?)

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[Teal]

@dtatham I believe it just means that the employee & their spouse are taking advantage of the IRA (and not opting out). I think some companies allow your spouse to elect in as well.

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[Teal]

@esenthil I think the best way to look at most of that is just to look at the forms on the IRS website and maybe the instructions if you need to go further in depth.

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[Teal]

I keep trying to decide if I should cram BEC and AUD into like beg of Feb and last day in March. I don't want to take any of the new tests!! 🙁 But my busy season is also Dec/Jan, so I just don't think I am going to be able to handle extra studying in Jan. Oh well. I guess I will discover what the new tests are like!

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[Teal]

Can anyone shed some light on the difference between the affect on the partners basis in a partnership non-liquidating vs. liquidating distribution? I just got a question on NINJA and got it right – It was a liquidating distribution – he had partnership interest of $70,000 and received cash of $10,000 and land with FMV of $63,000. His basis becomes 0 and the property's basis is $60,000. How would it be different for non-liquidating though? I thought it would be the same (unless maybe you use the basis of the land?)

70,000
-10,000
_________
60,000 left for basis of property

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[Namstut]

@CPAWarrior and @dtatham10

$435,000 book income is already reduced by the $5,000 amortization of the origination expense ($50,000/10 years = $5,000).

To calculate the taxable income you first have to add the $5,000 back to $435,000, which brings you to $440,000 income before the deduction.

Then you deduct $5,000 allowable deduction for the year, plus 12 months of amortization (based on the remaining $45,000/180*12=3,000).

So your taxable income will be $440,000-8,000=$432,000

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

[Namstut]

@Teal,

That is correct, in non-liquidating distribution if the partner's basis are below the NBV value of the distributed property, the partner's basis in the asset received will equal his basis just before the distribution. And yes, you would use the NBV value of the property in non-liquidating distribution.

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

[Namstut]

@esenthil,

That would be a lot of material to cover on the board!

For the individual taxpayer I would recommend downloading a 1040 form. It might help you understand where all of the deductions fall. And also review Schedule 1040 A where you will find all itemized deductions for individual taxpayers.

For a corporate taxpayer download form 1120

For partnership, form 1065, Schedule K and Schedule K-1

At-riks and losses – here is a good source. A lot of information to sort through but well explained: https://www.thetaxadviser.com/issues/2012/mar/clinic-story-04.html

What study materials do you use?

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

[Anonymous]

Hi all –
New here. REG will be my first exam. Been studying hard the last 3 weeks putting in about 5 hours a day on weekdays, and I pick a weekend day for 8. I'm using Roger & Ninja MCQ. I can't schedule my exam until CA decides to process my application so I am in a holding pattern in that regard. Open to any tips or tricks as I don't know many who have gone through the process in the last 10 years. Right now I spend about an hour each day going over everything I have already reviewed before I start on a new section. The MCQs are becoming easier, but I am super nervous as this is my first test. Hoping to knock out at least REG and BEC before the cutoff.

Anyway, glad to be apart of this community. Best of luck to everyone this quarter.

[Author]

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