[jeff]

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

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Tardis_Wobble]

How is everyone's Monday going??

Mine is filled with a bunch of twitching because I only have a few days left until this darn exam! Trying to stay calm and slow down my anxious thoughts 🙂

What is your guys' approach for Tax Credits? (Individual or Otherwise). I only have a few days left, so I'm not trying to get stuck on the smaller details but really make sure my understanding overall is where I think it should be to face this exam. I know the Child Care Tax credit pretty well, but is anyone going all out to memorize them?

You only have so much room in your brain for these things, so I was thinking of filling that area with AMT (individual and Corporate) as well as M1 – M3 Reconciliations (I have this sneaking suspicion I'm going to get a SIM on one of those – just because of how awful everyone keeps saying they are!)

I did about 10 Wiley SIM's today. Those are hard enough!

FAR - 76 - [4]
BEC - 71, 73, September 9 2016
AUD - July 28 2016
REG - October 2016

Black coffee, stress, and cottage cheese pancakes!

[Anonymous]

@Tardis_Wobble

Mine is in a few days too. Took one of those Becker final test and got a 58 overall. 50's average in the questions 70's in the simulations 😩.

Your plans sounds like a good plan. Make sure you are very familiar with all the Calculation of the corporation basis. Got a lot of those questions.

Good luck.

[isoceles]

@dthatham thank you!

Another basis question…ugh!

Partner A's basis in partnership = $26,000 at time of liquidating distribution. Distribution consists of $12,000 cash and land with adjusted basis for the Partnership of $10,000 and an FMV of $30,000. What was Partner A's basis in the land?

So $26,000 – $12,000 = $14,000 left for basis allocation. Here are my questions:

1) I know the answer is $14,000 because this a liquidating distribution so you distribute the remaining basis ($14,000) to the land. Does the Partner have to realize any gain here because he received $30,000 in FMV for only $14,000 in basis?

2) If this was a non-liquidating distribution, would the Partner's basis in the land be $10,000 (i.e. adjusted basis to the partnership) ?

Just starting to realize how difficult it is to not mix concepts between entities.

Thanks!!!

[Namstut]

Goodbye REGgers! Good luck on your tests! I am officially checking out from this study group! One more to go!!

@dtatham10 and @re2pect – good luck to you both!!

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

[Anonymous]

Very sad I just found this site and I'm almost done! Am I the only one struggling with alternate minimum tax? Why doesn't it make sense to me?!

[Tardis_Wobble]

Hi @isoceles –

1) Nope – no gain recognized on this transaction. The only time you would recognize a gain is if you receive actual Ca$h Monay in excess of Partnership basis for liquidating distributions. If cash received is less than partnership basis (as was here) no gain will be recognized, regardless of the amount of types of additional distributions received (as was property here).

2) That is correct. Partner's adjusted basis would then be 4k.

I hope this helps!

FAR - 76 - [4]
BEC - 71, 73, September 9 2016
AUD - July 28 2016
REG - October 2016

Black coffee, stress, and cottage cheese pancakes!

[Goingallin]

Bethany: if it makes you feel any better. Alternative min tax is the only thing in REG I'm currently struggling with. It's such a foreign concept.

[briannaktroy]

[isoceles]

@tardis_wobble thank you!

Does anyone have a good resource where they put partnerships, c-corps, s-corps next to each other and show the different calcs for basis, gain, etc. and the general rules? I'm thinking of a table that has an item down the first column (i.e. entity basis at contribution) and then the three entities going across the top.

One of the things I'm really struggling with is putting it all together. I was doing very well on each individual section, but I haven't touched some in weeks and find myself getting confused.

[RE2PECT]

@Namstut- CONGRATS!! I remember you saying you messed up one of the sims, but I'm glad you were able to pull it off! Good luck with FAR. One more to go!

isoceles- It's not exactly what you're looking for, but it might help clear up some things. I've been studying for REG for over 4 months and still get tripped up sometimes when it comes to basis between corps and S corps.

Try not to let weeks go by without reviewing everything. No matter how well you know something, if you don't see it for a while, you're going to start forgetting little bits here and there.

https://tax.cchgroup.com/downloads/files/contemporary-tax-practice/M1-Partnership-Taxation/T1-Partnerships-General-Formation-Issues/A-Legal-Formalities.asp

https://www.thetaxadviser.com/issues/2014/jan/nitti-jan2014.html
https://www.thetaxadviser.com/issues/2014/feb/nitti-feb2014.html

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

[HoosierCPA]

@namstut awesome score! Congrats! Good luck with FAR!!!!

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

[HoosierCPA]

@isoceles that is exactly my biggest problem. I think I have gone through them all so many times I have a pretty good handle but I still get tripped up from time to time. Everyone is slightly different and it just gets your brain in a knot. I got this from @re2pect, I'll type it out to avoid getting us all in trouble by exchanging emails!

PARTNERSHIP BASIS:
+Partners contributed property at Basis
+Services rendered at FMV
+Liabilities taken on from other partners
-Liability assumed by other partners (pro rata share)

CORP BASIS:
+basis of property transferred **
+FMV of services
+Gain recognized by shareholders
-Cash Received
-Liabilities assumed by corp (entire amount, not pro rata share like partnership)
-FMV of nonmoney boot received (bonds/securities)

**note the controlling ownership rules I talked about in a prior post. If you contributed property as a controlling owner, the property is contributed at NBV, if you are not controlling owner then it goes in at FMV

S CORP BASIS:
+Beginning basis
+Additional investment in stock
+Income items (separately stated income items + non separately stated, also includes tax free items!)
-Loss Items
-Expense Items
-Distribution to shareholders

This one is probably the most straight forward but for some reason is always the one I forget. The key is you basically add and subtract all income and expense items and EXCLUDE liabilities.

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

[kevinm36]

Just got my results back today and I failed REG (by 3 damn points).. does anyone know if I can set another test up for the first week in March? Or will I have to wait till April

[HoosierCPA]

@kevin unfortunately April :(. I have been there with REG…4 times to be exact. My scores have been 71,74,72,71 lol.

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

[Namstut]

Well it looks like I am going to receive the feed on this study group until the day I die! Lol! The notification function is still not working.

@dtatham10 and @re2pect thanks!!
I must have killed it on MCQs, I studied my ass off for this one! 🙂

I might end up moving FAR to late summer (so I don't have to wait for my score for 4 months!!). Work got crazy so I work after work instead of studying and now I am at least a week behind on my study plan. We will see, maybe everyone else will be cramming too before 3/10 date and it will play in my favor? I will decide 2-3 days before the exam date.

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

[Author]

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