[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]

thanks!

I would think they would want to get the taxable money distributed first

[Anonymous]

I'm starting to feel a little overwhelmed. There is so much material I don't think I'll ever be prepared!

[jstay]

i hear ya! im just going to keep banging out MCQ and reading the book and my notes

[JB2015]

@cpa8488 – There is a ton of material in REG, but you've got this! Just keep plugging away on those MCQ!

And I felt the exact same way several weeks before I took REG mid-April. I'm really excited for you that this might be your last test!

FAR - 81 (2/23/2015)
REG - 91 (4/16/2015)
AUD - 91 (5/26/2015)
BEC - 76 (7/20/2015)

I'M DONE!!!!

[Anonymous]

It's sad how much of this I've forgotten after only two weeks. I'm sure it would all come back pretty fast if necessary but, please God, I hope I don't have to ever study REG again.

[JB2015]

@Angel – Haha, I feel the exact same way! I looked at my REG book the other day and flipped through some of the pages (there is so much I've forgotten). I really really really don't want to study this stuff again!

FAR - 81 (2/23/2015)
REG - 91 (4/16/2015)
AUD - 91 (5/26/2015)
BEC - 76 (7/20/2015)

I'M DONE!!!!

[Anonymous]

Thanks guys I couldn't do it without this websites support. Nobody understands how difficult these exams are. I'm just thankful that studying is my only priority. Others aren't so blessed. @angel and jb I'm sure you both killed reg!! And @jstay you will be fine! If I remember correctly you had really good scores for your other sections as well. Back to these stupid questions I go!

[Anonymous]

C corp, has no corporate shareholders when it liquidates in year 1. in cancellation of all the stock, each shareholder received in year 1 a liquidating distribution of 2,000 cash and land with tax basis of 5000 and FMV of 10500. Before distribution, each shareholder's tax basis was 6500. What amount of gain should each shareholder recognize on the liquidating distribution?

a. 0

b. 4000

c. 500

d. 6000

[Anonymous]

B?

[Anonymous]

Answer D. I picked A. I thought in a liquidation gain is only recognized when the cash received is greater than shareholder's basis (which isn't the case here). So why is gain being recognized?!!!

Basis 6500

cash (2000)

remaining basis =4500

FMV 10500

basis (4500)

gain recognized=6000

Wait, I do think I remember reading something about this…. so when would the answer be 0?

[Anonymous]

right, D, I just worked out

[Anonymous]

not for C corp

[jstay]

yeah C corp its taxed FMV (i think we discussed this a few pages back). with this question i was figuring the gain for the C corp (they recognize one to, just as if land was sold to an outsider) so i was looking for 5,500 (the 10,500 – 5,000). i didnt realize i was take 6,500 – 2,000 for 4,500 then do it that way. So the gain is 6,000 recognized by shareholder and would it be 5,500 for C corp or would the C corp also go of shareholders basis…if this whole thing made sense to anyone, lol

[Anonymous]

I now can't remember how is S corp liquidation is treated. It's like I can only remember 2 of 3 any given time

[Sandia]

C and S corp are treated the same in the liquidation distribution to the shareholders.

FAR - 77 x2 Wiley book & no test bank
AUD - 83 x3 NINJA Test bank 3 time
REG - 80 x1 NINJA Test bank
BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
Ethic 100% Licensed VA CPA

[Author]

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