[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]

here: Payments to a third party. Cash payments, checks, or money orders to a third party on behalf of your spouse under the terms of your divorce or separation instrument can be alimony, if they otherwise qualify. These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc.), taxes, tuition, etc. The payments are treated as received by your spouse and then paid to the third party

Yes, by cash they don't mean the actual coins or banknotes, it's checks, bank transfers etc. Just not property

Payments not alimony. Not all payments under a divorce or separation instrument are alimony. Alimony does not include:

Child support,

Noncash property settlements,

Payments that are your spouse's part of community income, as explained later under Community Property ,

Payments to keep up the payer's property, or

Use of the payer's property.

[CPA2B_NJ]

Hi guys,

Question….

I have to wait a full month for my AUD score, so I wanted to start on REG. How doable is REG for 05/30 with a full time job, husband, and toddler?

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[Tncincy]

sorry typing too fast….only 8,000 is deductible. Even if he paid it to the college as a part of the alimony agreement.

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

[Tncincy]

@cpa2b_nj Anything is possible, but you will have put in mega time, It will be a lot of stress if you are looking at 5/30 then you need to decide today and get started. I would get the ninja products unless you have a good study routine already. Good luck and welcome to reg study group.

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

[Gabe]

it's doable, but like tcincy said, you'll have to put it major time and “make time” for it. I work FT, have a wife and 2 kids (1 toddler, 1 newborn), so making time to study was definitely the hardest part. I agree you should also start studying now. If you have any background in tax that'd be helpful too. Good luck and welcome!

CPA, CFE
CISA- Experience will be completed by August 2016

[Anonymous]

CPA2B_NJ: With those types of constraints, I wouldn't plan to sit for REG this quarter. One month is not very much time to learn the material and review it. I'm not saying it's impossible but it would require an enormous amount of time and dedication.

Stick with your July timeframe for REG. That gives you plenty of time to learn and review the material. That's my advice for what it's worth.

[CPA2B_NJ]

@tncincy – Thank you for the prompt reply and welcoming words! I'm starting to read R1 today during lunch. Maybe I should hold off on getting the NTS until I have at least 2 weeks of study to get a feel for the level of dificulty.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[CPA2B_NJ]

@Gabe – I have no tax background. I might be just rushing through this. Thanks for the words of advise.

@Angelwatch – I'm starting to see that I should stick with my original planned date. Thanks for the words of advise.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[Anonymous]

@jstay Thanks for explaining AMTI. Under “TIMME” you always add these back and your not allowed to itemize them for AMTI correct?

So if something is NOT under “TIMME” than it CAN be deducted for AMTI? Example charity, home mtg. used to buy/build/improve qualified residence, IRA

[jstay]

@cpa8488 yep looks good to me! im going to look up AMTI in the IRC later just so i know where it is in case i get a sim on it

[Anonymous]

how many ninja mcq you got left?

[jstay]

by the end of today i will have a little less then 1,000 not.

The adjusted basis of Ted's partnership interest is $30,000. In complete liquidation of his interest, he receives $10,000 in cash, his share of the inventory items having a basis to the partnership of $12,000, and two parcels of land having both fair market values and adjusted bases to the partnership of $12,000 and $4,000. What is Ted's basis in the two parcels of land?

A.

$8,000 and $4,000

B.

$5,000 and $3,000

C.

$6,000 and $2,000

D.

$8,000 and $0

answer is C, you have to allocate

[jstay]

@cpa8488 just came across this while doing a set

Robert had current-year adjusted gross income of $100,000 and potential itemized deductions as follows:

Medical expenses (before percentage limitations) $12,000

State income taxes 4,000

Real estate taxes 3,500

Qualified housing and residence mortgage interest 10,000

Home equity mortgage interest (used to consolidate personal debts) 4,500

Charitable contributions (cash) 5,000

What are Robert's itemized deductions for the alternative minimum tax?

A.

$17,000

B.

$19,500

C.

$21,500

D.

$25,500

[Anonymous]

ok here i go….

if its TIMME then its added back and can't be itemized..

medical expenses 10% of AGI is 10,000 anything greater can be itemized so 2,000

state income taxes and real estate are added back so can't be itemized so 0

qualified housing and mtg. interest is not added back so can itemize so 10,000

home equity mtg. interest is added back not allowed to be itemized so 0

charitable contributions are not added back so can itemize so 5,000

total 17,000 answer A?

[Anonymous]

graphite corp has been an S corp since inception. Smith owns 50% of graphite stock, basis is 12,000. For year end, Graphite has 80,000 ordinary business income and 6,000 in tax-exempt income. graphite made a 53,000 cash distribution to each shareholder. What total amount of income from graphite is includible in smith's adjusted gross income?

a. 96000

b. 93000

c. 40000

d.43000

[Author]

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