[jeff]

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

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

[CPYay]

Capital assets are typically non-“ordinary course of business” in nature. This includes stocks, bonds, your personal residence, your car, jewelry, etc.

Non-capital assets are business in nature. Inventory, AR, equipment, or items held for inventory (this is key. property held for resale is non-capital since it's held as if it's inventory).

A 1231 asset is a non-capital depreciable asset (real or personal) that has been held for a year or more. For farms, this includes livestock. These have special tax treatment in that if sold at a gain, you can treat the gain as a LONG TERM CAPITAL GAIN. If the item is sold at a loss, you can treat it as an ORDINARY LOSS and offset ordinary income. This is a big deal because you get the benefit on both sides of the sale (gain or loss).

Inventory is a non-capital asset, but it can NEVER be a 1231 asset.

[Accountingbeans]

@cpyay Great answer, thank you! Cleared that up for me. I knew 1231 were noncapital, but I didn't realize 1231 was just a TYPE of noncapital. Hence why I was so confused when I saw that inventory is noncapital, but not 1231. Thank you 🙂

Newbie
BEC- August 31

[CPASF1]

nvm didn't look at the question carefully

[Accountingbeans]

Taking REG tomorrow morning. Does anyone have a method they use to help find answers on SIMs with the AL? Or do you basically just use advanced search and sift through to find topics relevant to your questions?

Newbie
BEC- August 31

[danko1983]

@Accountingbeans full disclosure, i get time and a half to take the exams due to accommodations. i've passed reg once a few years ago, but i'm 2 for 3 since i got my adhd mostly straightened out, with reg being the one i didn't pass. I literally had probably close to 3 hours to do the sims and looked up every single thing i could in the AL and somehow, shockingly, scored below average. in my past experiences (i've taken these tests a lot), it's hit or miss as to whether or not the search function is actually worth a damn. i've looked up topics that easily should've been found and couldn't find a damn thing anywhere. other times, i've had it come right up. i would say just do not panic if you have to dig in and actually search for something. start at the main topics and dig in from there. i've used quotations around things too, so hell if i know what actually gets the searches to work properly.

BEC - exp 2/28/13 (crap)
AUD - exp 11/30/13

[rinahm]

@Tygolfer,Thanks for answering my questions. Just did practice test and I took too much time in MCQ and didn't really have time to use AL for SIM…I will prob need to go though MCQ faster and give more time for SIM…

[rossch201]

What are your strategies for DAY of exam

timing for mcq testlets vs simulations.

MY plan is the following:
1st testlet:
30-35 min – I am really trying to keep it at 30 and not go back to if I can help it

2nd testlet:
35-40 (45 MAX) – no idea how this will be due to getting a med/hard testlet

3rd testlet:
35-40 (45 MAX) – depending on how the 2nd goes I am going to try to not go back to any ?

simulations:
My goal is to have 12-15 min / sim. So on the low end that is 72 to 90 min, which seems way too high. I ideally I want 80 min for SIMs giving me a max time of 100 (33.33 avg) min for mcqs.

Anyone else?

[RE2PECT]

@rossch201- Both times I took REG, I had about 90 minutes for sims. I had a little less time on the retake because I took a break before starting the sims. I suggest doing that if you have enough time.

@Accountingbeans- I'd try and know where to find everything regarding basis and distributions for corps, s corps, and partnerships. It will save you time trying to search for it if you already know where it is.

Good luck to everyone taking it the next couple days!

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

[danko1983]

good luck to everyone in these last few days! got about 3 hours before it's showtime, to cram as much as possible into my brain.

BEC - exp 2/28/13 (crap)
AUD - exp 11/30/13

[gregc93]

I just took reg on 3/8. My first testlet was pretty simple. The second was a little harder, but then came the 3rd. It completed destroyed me. The questions were on topics covered in becker but they worded them longer and the answer choices were really unclear and confusing. I barley got any mathematical questions. Most were tricky conceptutal questions and tricky blaw mxq. sims were hard bc they there in situations that becker never went into intense detail about. Any thoughts on this? This is my last exam. I hope I do not have retake in q2.

[diabloargentino]

Don't have things in front of me because I'm at work but I was stuck on a SIM that read something like this:

Taxpayer is involved in a like-kind exchange which he has an asset and the adjusted tax basis is given. There are details of what is exchanged but then further, it also mentioned that during the period they held the asset, they incurred non-capitalized expenses of taxes, insurance, etc. with values for those expenses. When doing the math and work for gains, etc. on the exchange, should I be taking into account all those expenses? Or do you assume that because they give you an adjusted tax basis, that is the value you should be using? I didn't get a chance to work through it but it's been stuck in my head.

Thanks!

[tmjcpa]

I just sat for REG today and it was primarily focused on random minutiae from R7, which was unfortunately the chapter I didn't get to study before taking the exam, and the UCC sale rules. There were absolutely no straightforward questions. Anyone else take the exam today and struggle?

[Author]

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