[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for REG.

“Death and Taxes” – Individual Tax for the CPA Exam

Posted by Another71 on Monday, November 24, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

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

[Anonymous]

no, only for partnership… Right?

[jstay]

thats what im asking lol yeah i couldnt remember, but i know we talked about it in here

I believe because the person wouldnt be liable through the S corp so that liability wouldnt increase the basis

[jstay]

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/S-Corporation-Stock-and-Debt-Basis

[Anonymous]

I thought it was one of your quizzes, I finally decided to answer haha

I keep forgetting everything, that's what Alzheimer must feel like

[Anonymous]

I keep wondering how is gas and oil depletion relevant to S corp and partnerships, do real people actually form S corp and then drill for oil? No, I mean really?

[Jostrowski]

Hey guys quick question. I heard a rumor that Becker doesn't prepare you well for REG sims. Should I just attempt to REALLY learn the concepts and not even bother practicing the sims Becker gives me? Or maybe even attempt to use another source to practice the sims?

First time taking REG.

Thanks!

AUD: 62 [2/27/15], 87 [5/29/15]
REG: 76 [5/1/15]
BEC: 86 [7/20/15]
FAR: 76 [8/28/15]

DONE!

Becker self-study, Illinois candidate

[jstay]

During 2014, Adams, a general contractor, Brinks, an architect, and Carson, an interior decorator, formed the Dex Home Improvement General Partnership by contributing the assets as follows:

Fair % of Partner Share

Adjusted Market in Capital

Asset Basis Value Profits and Losses

---

---

---

---

Adams Cash $40,000 $40,000 50%

Brinks Land $12,000 $21,000 20%

Carson Inventory $24,000 $24,000 30%

The land was a capital asset to Brinks, subject to a $5,000 mortgage, which was assumed by the partnership.

Carson's initial basis in Dex is:

A.

$25,500.

B.

$24,000.

C.

$19,000.

D.

$5,000.

[jstay]

@jostrowski, i wouldnt not look at the sims in becker. i did once before my first take (except r3 & r4) and have done so for my retake (still have to do r3 & r4, lol) but yeah look over them. as others have said the big thing is to look at the AL in becker. When are planing to sit?

[Anonymous]

25500?

[Tncincy]

B. 24,000 Carson's basis not Binks

It begins with a 75
Been here too long as a cheerleader....ready to pass

[jstay]

its A, 25,500. its 24,000 plus Carsons share of the liability. 5,000 x 30% = 1,500

[Anonymous]

I can't even understand who does what

Benson, a singer, owns 100% of the outstanding capital stock of Lund Corporation. Lund contracted with Benson, specifying that Benson was to perform personal services for Magda Productions, Inc., in consideration of which Benson was to receive $50,000 a year from Lund. Lund contracted with Magda, specifying that Benson was to perform personal services for Magda, in consideration of which Magda was to pay Lund $1 million a year. Personal holding company income will be attributable to

A. All three contracting parties.

B. Benson only.

C. Magda only.

D. Lund only.

[Tncincy]

jstay you're right I didn't add the 1500 absorbed from the 5000 mortgage. By the way, I just listened to the partnership blitz. I hope that's not cheating.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Tncincy]

So then is binks basis 22,000? 21,000 + 1,000 on mortgage?

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Anonymous]

I can't tell what basis of his land is. If it's 12000, then 12000 – 5000+1000 = 8000. If 21000 – 5000 +1000 = 17000

[Author]

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