[jeff]

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

[jjjgolf500]

@jack Thanks…Ill go ahead and skip that part then!

[RE2PECT]

@Jack- The $20,000 gets reduced by $5000 due to the increase in the value of the home. The $1200 upkeep is an additional expense which makes it $16,200.

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

[jack yassa]

@RE2PECT
Thanks a lot, that's very helpful.

[CPA788]

Greetings REG friends. Coming back to REG for my most exciting attempt yet – #4. I don't mind REG so much, I feel like I get it, it makes sense most of the time, and I have a crap ton of flash cards to memorize the weird stuff. But do any retakers out there feel like REG sorta makes sense, and then just gets worked by the exam? I'm going through my Becker again (yes, I've used NINJA mcq) and feel like I'm just aimlessly going through old chapters with little difficulty – property tax being an exception. How do I kick this rut I'm in? Because I clearly don't have this material mastered.

BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16

CA Candidate

[RE2PECT]

@CPA788- I've only taken REG once and wasn't fully prepared the first time, but I'm feeling the same as you while studying for the retake. I'm using Ninja and Gleim and I'm crushing Ninja mcq's. Gleim is on another level, but I've been holding my own for the most part. I think most people have trouble with the sims and there's really no way to get around it. You can practice them till you're blue in the face, but they'll still figure out a way to throw some oddly formatted sims with confusing directions at you.

I'm just hoping I can do as well as I did on the mcq's the first time and somehow scrape by the sims. I've been reading people's rants lately about how random their sims were and it's giving me anxiety lol. Good luck on your retake, I'll be taking it the same day as you.

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

[norseman88]

@CPA788 – IMO the multiple choice questions on the REG exam are easy. The sims are what determine a pass vs fail. When it comes to sims, just hope you receive easy ones. They will throw in terms that you've never heard before and you will surely receive sims where it's unclear what they want. On the sims, make sure you do the split window view when you have questions that require reading another tab.

[HoosierCPA]

@norseman88 agree 100%. I think they need to make the mcq's tougher and the sims more straight forward. I'm sure the pass rates would miraculously stay right around the same…they have for years but at least it would eliminate my excuse that I fail because the damn sims are a joke.

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

[RE2PECT]

So what phaseouts has everyone made an effort to try and remember? I know Gleim is usually overkill, but I'm seeing a bunch of mcq's referencing phaseouts I'd never think to memorize. Just curious what people would consider a must know.

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

[HoosierCPA]

@re2pect off the top of my head the passive rental income phaseout is one of the few I know and have found beneficial. The organization start up cost $5k up front deduction phase out is probably a good one to know as well. Beyond that I can't think of any that I know or think are relevant lol

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

[RE2PECT]

@dtatham10- Those two and the Sec 179 I know because they show up a lot in mcq's. I'm working through individual tax with Gleim and they're asking about phaseouts for things like the American Opportunity Credit and the Child Care Credit lol. Who the hell is going to memorize those?!

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

[HoosierCPA]

Yeah I have gotten that question a few times…I've attempted to memorize those credits before but every once in a blue moon when I cross them again I always space the rules lol. Besides something like you have to be 13 or younger I have no clue…maybe like 20% of expenses up to $3K??? Might just be making sh** up lol.

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

[abig]

Need help with the AMT question below. This question confuses me. (I am using Becker).

The way the answer is calculated seems opposite of what I thought Becker taught. I thought these itemized deductions are always added back to taxable income, thus not being actual itemized deductions for AMT purposes. The answer seems to state they are. I thought Taxes & the mortgage interest are the add backs.

Robert had current-year adjusted gross income of $100,000 and potential itemized deductions as follows:
Medical expenses (before percentage limitations)
$ 12,000
State income taxes
4,000
Real estate taxes
3,500
Qualified housing and residence mortgage interest
10,000
Home equity mortgage interest (used to consolidate personal debts)
4,500
Charitable contributions (cash)
5,000
What are Robert's itemized deductions for alternative minimum tax?
a.
$19,500
b.
$21,500
c.
$25,500
d.
$17,000
Explanation
Choice “d” is correct. Robert's itemized deductions for alternative minimum tax purposes are calculated as follows:
Medical expenses (exceeding 10% of AGI)
$ 2,000
State income taxes (not allowed)
−
Real estate taxes (not allowed)
−
Qualified housing and residence interest
10,000
Home equity mortgage interest (not used to buy, build, or improve the home-not allowed)
−
Charitable contributions (no difference)
5,000
Alternative Minimum Itemized deductions
$ 17,00

[jack yassa]

@abig

<Itemized>

Home Mortgage interest
Taxes/Refund
Medical Exp > 10%
Miscellaneous < 2%
Casualty loss
Charitable Contribution

the right answer is 17,000

If the question about “Add-back”

Home mortgage”NOT” used to buy,build, improve – a fixed home
Real estate tax
Property tax
State and local tax
Medical exp <10% and > 7 1/2 if older than age 65
Misc >2%
exemption

Good luck.

[HoosierCPA]

@abig AMT always trips people up…MYSELF INCLUDED! Qualified housing interest IS an allowable deduction, even for AMT purposes. Charitable contributions and medical expenses are allowed as well…thus the 17k

The general rule, like it says in your post, is home equity loans must be used to build or improve your home, if you take out an equity loan then proceed to buy a Ferrari with that money then sorry, no dice, you have to add it back for AMT purposes.

The Medical expenses is also a confusing one, people see its on the mnemonic as an add back but if you read closely it's only an add back for old fogies (greater then 65) that take the 7.5% deduction, you add back the 2.5% for the additional old person benefit..since the example doesn't give there age, it's assumed they are below 65, which means they get to deduct the expense greater then 10%.

Charitable contributions, isn't on the mnemonic at all (PANIC TIMME if you don't know what I mean by mnemonic!), so it's straight forward, they are allowed the decution.

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

[RE2PECT]

@dtatham10- I'm not even going to bother memorizing them. My brain is already at capacity and if I start adding new things something more important will be lost lol.

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

[Author]

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