[jeff]

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

[HoosierCPA]

@aa yeah I've had that happen quite a bit. Sometimes it's as simple as just going through material on a day your brain isn't as sharp! Since the first round of people took their exams this thread has been quiet. I used to get responses on my questions immediately, now it's pretty rare to get answers :/. It's ok though, forces me to open the book and find the answer myself–not always a bad thing!

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

[cpaMD86]

I've been working close to 200 questions a day since last week – very tiring. My goal was to get through all of the tax questions, which I have, and begin reviewing questions through the ‘Troubled Questions' option in Ninja. I am definitely doing a lot better with the material, but I still have like 500 biz law questions to see next, ugh. Can't wait to attack SIMS ! 😐

FAR: 9/3

[HoosierCPA]

Gleim quesiton, they have separate sims on Estates:

-Eric owed $350K on a home mortgage when he died. His estate did not pay the remaining balance
Answer: Not included in gross estate
Explanation: Liabilities of a decedent generally do not affect the amount of the GE unless the estate actually pays for them.

-Unpaid mortgage of $10K on a property that was included in calculating the decedent's gross estate.
Answer: Deductible on the estate return
Explanation: Unpaid mortgages on property are deductible if the value of the decedent's interest is included in the gross estate

So is the “if the value of interest is included in gross estate” what's missing from the first scenario that causes it to not be included in the GE? I'm confused because I was going with the logic of the first scenario that any unpaid mortgages are NOT included in the GE. Or are they saying the first scenario the GE never paid for them whereas the 2nd scenario they were unpaid at the time of the death and then the GE paid them? I'm thinking out loud here lol

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

[cpaMD86]

From the research I did, the amount is included in the GE and is deductible.

§ 20.2053-7 Deduction for unpaid mortgages.
A deduction is allowed from a decedent's gross estate of the full unpaid amount of a mortgage upon, or of any other indebtedness in respect of, any property of the gross estate, including interest which had accrued thereon to the date of death, provided the value of the property, undiminished by the amount of the mortgage or indebtedness, is included in the value of the gross estate. If the decedent's estate is liable for the amount of the mortgage or indebtedness, the full value of the property subject to the mortgage or indebtedness must be included as part of the value of the gross estate; the amount of the mortgage or indebtedness being in such case allowed as a deduction. But if the decedent's estate is not so liable, only the value of the equity of redemption (or the value of the property, less the mortgage or indebtedness) need be returned as part of the value of the gross estate. In no case may the deduction on account of the mortgage or indebtedness exceed the liability therefor contracted bona fide and for an adequate and full consideration in money or money's worth. See § 20.2043-1. Only interest accrued to the date of the decedent's death is allowable even though the alternate valuation method under section 2032 is selected. In any case where real property situated outside the United States no deduction may be taken of any mortgage thereon or any other indebtedness does not form a part of the gross estate, in respect thereof.

FAR: 9/3

[HoosierCPA]

@cpamd thanks a lot!

I've been working through estate and what amounts get included in estate vs decedents final return. I thought of an example I wasn't sure about…if the decedent gave someone a 100k loan with 10% interest what amount is included in the estate? Would you just do the principle amount of 100k or do you include the interest in there as well?

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

[cpaMD86]

I have't worked estate Sims, but according to the code (above) the interest that is accrued through the date of death should be included with the unpaid liability.

FAR: 9/3

[RE2PECT]

Hope the studying is going well for everyone. Haven't been getting as much done as I would like the past few days. Trying to get everything ready for my son's birthday party this weekend. On top of that I got summoned for jury duty this Monday :-/. Hopefully I can get out of it, but I already delayed it twice thanks to these exams lol.

I'm glad I pushed my exam back, but I need to get back on track and get into a routine again. It's easy to fall off when you reschedule, but it's starting to creep up on me.

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

[abig]

Hey Everyone,

I'm taking REG Feb 21st. I just finished all the lectures with Becker and now im reviewing until then.

I passed BEC with ease even though i didnt think i was going to do that well. REG is definitely a lot harder but we'll see how it goes!

[cpaMD86]

@dtatham10 and @RE2PECT

You guys have mentioned that the SIMs have been the Achilles heel of the REG Exam. Was the AL at all helpful in your previous sittings, or was there just no time to research each SIM?

FAR: 9/3

[HoosierCPA]

@cpamd some people talk about not having time..I never run into that problem with REG. I do think AL can be helpful. I would suggest working through the sims first then using the remaining time to double check on topics you are unsure on.

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

[RE2PECT]

@cpaMD86- I didn't find the AL helpful for the sims I had, but others have said that they were able to use it. I wouldn't count on it helping, but like dtatham10 said, it might be useful to check some answers if you have enough time. I find the REG AL harder to search through than the one for FAR and AUD so it's probably better to familiarize yourself with it beforehand.

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

[NwOWolfPak]

Just got back from testing. MCQ's were not bad and evenly distributed, but the SIMS caught me off guard again. I was able to get research question in 2 min and was able to use the AL to help me answer the 2 of SIMS. The other three were really out there and I took way too long to figure out what they were even asking me. I think I might have to retake in Q2. Now off to study AUD and top of that it's snowing in NY.

Best of luck to everyone.

[HoosierCPA]

@NWO 9 out of 10 people always come out of the REG exam with the same complaint about sims. You would think they would learn to test us on big topics. It's starting to really annoy me that you can understand 95% of the material and then you'll get 2 or 3 sims on topics that are a paragraph in your study material. Sorry I'm venting because I just see how this exam is going to go. I'm going to feel more confident then I have ever felt going into the exam, fly through the MCQ's and then I'll hit a wall on the sims because I either A) don't understand what they want or B) didn't study the topic well enough. Frustrating!!!

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

[jack yassa]

Excuse me guys i don't understand what's “AL” means?.

[RE2PECT]

This seems to be most people's reaction after taking it this window. I think they do a horrible job with the wording and instructions for the sims. It's hard enough trying to remember everything, but then they try and trick you with weirdly formatted sims that don't even make sense half the time. I've been studying nonstop for REG since the beginning of October between taking it the first time and continuing to study for my retake. I've already done about 5500 mcq's and 200 sims just for the retake and still won't be prepared for whatever sims I get.

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

[Author]

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