[jeff]

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

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

[Anonymous]

rescheduled my exam for 2/23. after careful consideration I just didn't feel ready to take it on 2/10. distributions and basis are killing me. I think I am understanding the concepts when taking notes but then some of the questions completely throw me off. I work in tax so the computation of TI or completion of forms is welcome with respect to sims. I feel like I've got individuals and businesses down except basis. business law I plan on reading over again in addition to estate tax (I pray I don't see much of it on the exam). I hope that after watching Rogers lectures again on basis and reading over missed question solutions things will become more clear. I don’t think I will feel confident going into the exam no matter what I do, but hopefully brushing up on these areas will give me a better shot. I really DO NOT want to take REG in the new format.

[AndrewE]

For those using Becker, any advice on R3 Simulations? I just went through them and I feel as if I learned absolutely nothing in the lectures, even though I did fairly well on the MCQS.

These SIMS are deflating man…

[HoosierCPA]

@andrew I pulled up chapter 3 sims just to check it out and found one on property transactions that is confusing me. It's over the sale of principal residence.

“Lisa who is single, purchased a condominium on January 1, Year 3, for $200,000 and immediately rented it. On January 1, Year 5, she moved into it as her principal residence. During the two years on nonqualified rental use, she claimed depreciation of $11,000. On January 1, Year 9, she sold the condo for $410,000.”

Answer: $81,000 taxable gain.

The explanation says they have to include the depreciation recapture (don't disagree there). But then they say you have to exclude the % of time the property was used for rental purposes from your home sale exclusion…so they say 2 of the 6 years it was used as rental use that you have to include in your gain as well so $210k x 33% (2/6) = $70K.

–I thought the rule was if you used the property as a primary residence for 2 out of the last 5 years you were entitled to the entire $250k exclusion? I did a quick google and they said the same thing as well.

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

[AndrewE]

@dtatham10 I have not seen that one yet, but the sim you pulled up does not sound like C-Corps and S-Corps to me.

[HoosierCPA]

@andrew I'm on the 2017 Becker. R3 is property transaction, R4 Corp, and R5 would include S Corp

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

[AndrewE]

@dtatham10 I am also on 2017 Becker, Regulation 3 – Corporation Taxation I did not see that sim in any of the 3 sets of 9 sims they have provided.

[HoosierCPA]

@andrew I think you're on the 2016 version actually. I just flipped back to it and R3 on the 16 version is “C and S Corporation Taxation and Exempt Organizations”

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

[AndrewE]

@dtatham10 I believe I can still use 2016 for Q1 testing, I thought my app updated I guess not. These SIMS are still horrible, I'll just go through them as best as I can and move forward to the next chapter. My test is on 3/9

[HoosierCPA]

@andrew yeah you're fine using the 2016 I was just trying to clear up the confusion. You have plenty of time to get these concepts down. Important thing is to be honest with your weaknesses and go through the material as much as you can. I, on the other hand, have less then a week to prepare. I think I am ready but you just never know with this exam.

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

[AndrewE]

@dtatham10 Already planning to come back to Corps and Partnerships and I didn't even go through partnerships yet, the individual MCQs are not bad, but when it comes to putting it all together in a SIM thats where I get caught up, frustrated and worried. Honestly I thought AUD sims were bad but these are definitely worse.

I know for a fact I'm never ready for these tests but you just have to go into it and hope for the best.

BEC- 77
AUD- 70, retake 1/22
REG- 3/9
FAR- TBD

[Tardis_Wobble]

Woof. Exam day tomorrow for me. I will say that REG has actually been my favorite section to study for (is that a thing?). But I will also say I sure as hell hope I don't have to take this thing again, especially with the exam changes I just want to be done.

I have been studying my butt off as much as possible with a full time job these past two weeks. I am going to spend the rest of the day doing as many MCQ's and writing/reading notes on the areas that I have at least a 60% + Grasp on. I'm one of those that has to study the day before the exam. But if I don't know it, or don't have at least a 60% grasp I don't bother.

That being said, I didn't reach the portion of “Business Structure”. in B-Law. Does anyone have any thoughts on this? Obviously I have done second hand questions through answering Entity Accounting probs etc, but should I bother trying to try and get this section in or skim the basics?

I have been using Wiley, Ninja, and a 2013 Becker Reg book (I don't worry about the phase out and amounts, I know they are outdated). So I think the Business Structure is in the “R8” area that people tend to skim.

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

Black coffee, stress, and cottage cheese pancakes!

[HoosierCPA]

@tardis business structures is probably one of the more straight forward topics. Know the basics, know which ones don't require filing (partnerships, joint ventures, sole proprietorships). Know which ones have unlimited liability vs limited liability. Know how profits losses are split. If you know those 3 areas well then you should be fine in that area.

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

[CPYay]

@cpaMD86

Your experiences and drive sound a lot like mine. My hat's off to you. I had non-accounting roles up until 7 years ago and worked my way from AP to a Staff Accountant. I'm 34 now and am currently a Sr. Accountant in a private service industry. I graduated with my accounting degree this past May and leveraged that, my experience, and passing FAR to land my senior role. I'm currently fulfilling the experience requirement under a CPA (thank goodness).

I'm on the fence about what to do next.

I want the public experience for my resume, but it'd be a demotion since I'd have to go in as an entry-level auditor. It'd take 2-3 years to make a Senior Associate (most exit at that point for senior roles and I'm already there). Not sure if I want to sacrifice 3 years and then try to land a Controller gig or just continue my current trajectory. I feel like public would give me so much more knowledge, but having a family makes working late difficult. I already work OT and miss time with them. I also wouldn't mind teaching at a college/university at some point, part or full time.

Aside from all of that, I must say this exam process has given me invaluable knowledge that I apply every day. There's just too much to know/do in accounting to ever be an expert. With that said, I'm always trying to learn more.

[cpaMD86]

@CPYay

I've entertained the idea of going the public route as well, but I had the same concerns. I can't imagine long hours, and traveling with a family back at home. It'd be very difficult. I spoke with my boss about this as she was previously employed with E&Y for almost 10 years. Her previous experience did not fully align with our current industry. We are a non-profit state institution, so she had very limited experience with our form of accounting. But, she is very knowledgeable and involved in our audits which allows her to sort of ‘push' these young auditors around lol. She knows her stuff.

There are plenty of factors to consider as working both forms of industries will have their positives and negatives. I believe if you are currently in an environment that promotes internal growth, and gives you the ability to succeed then the goal should be continuous growth. I genuinely enjoy my job, the organization, and the culture it promotes. There is room for growth, and gaining my CPA can only push me forward. If you enjoy your organization, and have the ability to grow then keep pushing forward. If not, then find something fulfilling that offers you those opportunities.

I approach material on a ‘need to know' basis. I can't learn everything right away, but those I work with know that if something is needed I will learn it and apply it. That's my approach – potential and value. There will be a time where what I've picked up step by step will be a long road of knowledge.

FAR: 9/3

[HoosierCPA]

@cpamd @cpyay you guys care to share your input on my home exclusion question? It's got me stumped. I'll repost:

“Lisa who is single, purchased a condominium on January 1, Year 3, for $200,000 and immediately rented it. On January 1, Year 5, she moved into it as her principal residence. During the two years on nonqualified rental use, she claimed depreciation of $11,000. On January 1, Year 9, she sold the condo for $410,000.”

Answer: $81,000 taxable gain.

The explanation says they have to include the depreciation recapture (don’t disagree there). But then they say you have to exclude the % of time the property was used for rental purposes from your home sale exclusion…so they say 2 of the 6 years it was used as rental use that you have to include in your gain as well so $210k x 33% (2/6) = $70K.

–I thought the rule was if you used the property as a primary residence for 2 out of the last 5 years you were entitled to the entire $250k exclusion? I did a quick google and they said the same thing as well.

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

[Author]

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