[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

[jstay]

yeah becker has that formula or something i just didnt know how to type it, your way was easier though lol

[Anonymous]

does anybody know where I could find a good chart of all the authoritative bodies, what's created by what and why?

[jstay]

A taxpayer purchased and placed in service during the year a $61,000 piece of equipment. The equipment is 7-year property. The first-year depreciation for 7-year property is 14.29%. There is an allowable Section 179 limit in 2014 of $25,000. What amount is the maximum allowable depreciation without using bonus depreciation?

A.

$25,000

B.

$8,717

C.

$30,144

D.

$33,717

Answer is C

[Anonymous]

yeah, 25000 + 5144.4. They consider sec 179 expense depreciation

[jstay]

yeah the 5144.4 is calculated by dividing 2 into 7 then multiplying that 61 – 25. Then you need to cut it in half for half year.

look at this quesiton. i thought payments could be made in cash OR cash equivalents (i.e. education/credit card bilss)

Which of the following conditions must be present in a post-1984 divorce agreement for a payment to qualify as deductible alimony?

Payments must be in cash.

The payments must end at the recipient’s death.

A.

I only

Incorrect B.

II only

C.

Both I and II

D.

Neither I nor II

answer is C

[Tncincy]

I see you guys are at it early, no worries…I'm putting in the time today too. I wanted to start early because I can't stay up all night like those college days. I can't do and be sane the next day, besides I have no idea what I read or why I made certain notes. So, I went to bed early and am starting semi-early. The good thing is I have all day and intend to use it.

Keep those questions flowing, I'll try to answer as many as possible. I am currently working on property transactions.

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

[Anonymous]

no, cash only!

[jstay]

@anjanja ar you sure? the becker book says cash or cash equivalents (meaning college fees or credit cared fees)

there was even a problem in becker with a person having to pay 10,000 a year to ex spouse. 20% was child support..but the problem said person paid 7,000 cash and 3,000 to college for ex spouse, and the question asked what is deductible for alimony, and the correct answer is 8,000.

[Tncincy]

The answer is 8,000 because the child support is separate from alimony…so, 7,000 in cash could be of the 8,000 that must be paid, but the college for the ex is not alimony. (10,000 x 20% = 2,000 – 10,000 = 8,000)

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

[Anonymous]

well I assume they paid college with cash?

[Anonymous]

yes, check is also cash, meaning not property

here:

You and your spouse or former spouse do not file a joint return with each other

You pay in cash (including checks or money orders)

The payment is received by (or on behalf of) your spouse or former spouse

The divorce or separate maintenance decree or written separation agreement does not say the payment is not alimony

If legally separated under a decree of divorce or separate maintenance, you and your former spouse are not members of the same household when you make the payment

You have no liability to make the payment (in cash or property) after the death of your spouse or former spouse, and

Your payment is not treated as child support or a property settlement

[jstay]

no the 2,000 is not alimony because its child support. 10,000 x .20 is 8,000. if he only contributed 8,000 in cash and 2,000 is designated child support then wouldnt he only be able to deduct 6,000? the 3,000 school brought it up to 10,000. subtract 2,000 we get to 8,000 deductible. Alimony must have included that 3,000 to come uo with the 8,000

[Anonymous]

yes, they can pay a part of alimony directly to college, it also counts as alimony

[jstay]

either way i dont think it would matter if it was cash to the college. if i wrote a check for college tuition in the name of the school on behalf of ym ex wife, that is still considered alimony, right? even though she did not get possession of the check nor cash it, i just wrote it directly to XYZ college

[jstay]

cool, it was just one of those weirdly worded questions

i hate getting those on the exam, you now the right answer butt he question just doesnt make sense..pretty sure i have gotten 1 or 2 questions like that on every exam

[Author]

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