[jeff]

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

[HoosierCPA]

@re2pect yeah with some things you just have to play the odds. If you do see it on the exam, tip your cap and move on. That's the one thing I”ve learned with the cpa, you can't learn everything, and trying to learn everything can cause your brain to fry out and forget the easy stuff. You're sitting late this month right? I'm schedule for Feb 14th..I'm sure my wife is going to love that I'm pissed off from another frustrating exam experience on valentines day lol

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

[abig]

I figured it out.

Thanks guys. Now need to memorize the exemption formula!

[jack yassa]

@dtatham10
Refund of prior state income taxes
I'm wondering if that is non-sep stated item, any idea?

Thanks.

[HoosierCPA]

@jack separately stated, line 10 on the 1040 “Taxable refunds, credits, or offsets of state local income taxes”

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

[RE2PECT]

@dtatham10- Hahaha tell her you'll make it up to her over the weekend. Luckily V Day is during the week this year and it'll give you an excuse to not celebrate. I'm taking it Feb 27th. My wife was already mad that I missed Thanksgiving lol. She wasn't happy that I pushed my exam back this time, but after I told her I'd have to wait for my score until August if I needed another retake, she said take as long as you need lol.

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

[jack yassa]

@dtatham10
LOL you too fast man!

Thanks a lot.

[HoosierCPA]

@jack yeah, now that you mention it I probably should be focused on month end close at work!

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

[HoosierCPA]

@re2pect yeah the thought of my final crack at REG, a 10 week wait, and a new exam format gives me too much anxiety. Hopefully it doesn't come to that!

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

[jack yassa]

$160,000 $150,000 of charitable contributions $144,000
A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year.

Taxable income before charitable contribution, $160,000 × 10% limit = $16,000.
Preliminary Taxable Income $160,000
Minus Charitable Contribution -16,000
Total Taxable Income $144,000

This answer at Ninja, While becker make it 145,000 ? which one is correct?

[HoosierCPA]

@jack the first line has me a little confused:

“$160,000 $150,000 of charitable contributions $144,000”

How much are the contributions and how much is taxable income?

Like you said the max allowable is 10%…the only real curveball (that I can think of) is sometimes they will give you taxable income after the dividend received deduction–in that case you would need to add back the deduction and calculate then calculate the 10% limit.

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

[jack yassa]

@dtatham10
Becker answer is 145,000 that's weird!

[HoosierCPA]

@jack I'm not even sure I understand the problem. Did you copy all the details over correctly?

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

[jack yassa]

@dtatham10

Becker answer for the same TBS is 145,000. That's why i got confused!

[JMG]

@jack yassa what does the 150K in your problem represent? It looks as if Becker used that amount for the 10% threshold?

[jack yassa]

This is Becker answer
Line 3 — $145,000
The charitable contribution deduction is the lesser of the amount of the charitable contribution or 10% of taxable
income before the following deductions: (i) the charitable contribution deduction, (ii) the dividends received
deduction, (iii) any net operating loss carryback (but NOL carry-forwards are deducted), (iv) any capital loss
carryback, and (v) the U.S. production activities deduction. So, the charitable contribution deduction here is
$15,000: the lesser of (i) the $15,000 charitable contribution or (ii) $16,000 which is 10% of $160,000 preliminary
taxable income. As such, line 30 is $145,000: $160,000 preliminary taxable income less the $15,000 allowable
charitable contribution deduction.

[Author]

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