[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

[Tncincy]

I'm thinking even though the bond was used to pay for college tuition, he did receive interest which would need to be reported.

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

[Anonymous]

yes, but for series EE there is an exclusion if proceeds are used for paying for higher education. Unless it was issued before 1989

[Anonymous]

@anj lol don't sweat the small stuff. just move on some of the questions are just absurd!

[jstay]

yeah agreed, while i love ninja and think its one of the best products some questions go into such detail. although im sure on the exam when you see 1987 on a EE bond youll be like HELL YEAH NINJA!

[Anonymous]

isn't the fed. securities regulations just a miserable topic

[jstay]

what do you mean federal security regulations? Like Regulation A & D – 504, 505, 506

[Anonymous]

the whole thing, 1934, 1933, reg. D, JOBS, dodd-frank

[jstay]

oh yeah haha forgot about 1933 & 1934, best thing would be to do questions on them because it starts to make sense after a while, kind of. let me know if theres anything specific i could help with

[Anonymous]

about to start my study day!!

[Anonymous]

for like-kind exchanges when it comes to figuring out amount RECOGNIZED the rule is lesser of amount realized or boot received. But sometimes the answer is lesser of amount realized or boot received less boot paid AKA cancellation of debt. When do I use just boot received and when do I net the boot received/paid?

[Anonymous]

@cpa8488 I believe you only net when you have paid COD, if you pay cash you do not net.

[jstay]

Yes i believe your both correct, i came across this earlier today and think i have it down

if i paid 1,000 and received a 3,500 trailer…we wouldnt net it to 2,500

however if i took on a 1,000 loan and he took on a 3,500…i think we would net it to 2,500

..right..? i hope

[Anonymous]

Ohhh I c what ur saying jstay… So if its property it's not netted. But cash for cash it's netted? I didn't pick this up because I treated the trailer as cash when calculating. But yeah that makes sense now!

[Anonymous]

why would it be restricted? I don't see any restrictions on resell for 504

Lux Limited Partnership intends to offer $600,000 of its limited partnership interests under Rule 504 of Regulation D of the Securities Act of 1933. Which of the following statements is correct?

Correct A. The resale of the limited partnership interests by a purchaser may be restricted.

B. The limited partnership interests may be sold only to accredited investors.

C. The exemption under Rule 504 is not available to an issuer of limited partnership interests.

D. The limited partnership interests may not be sold to more than 35 investors.

You are correct, the answer is A.

A limited partnership interest is considered a security. Consequently, the sale of the interest may be restricted under federal securities regulations.

[Anonymous]

there are restrictions on reg 504

1. reg D is intended for private offerings no general advertising of the securities allowed.

2. immediate resale to the public is prohibited. Issuer must insure that purchasers will hold for LT investment (2 years or >). Before the 2 years are up, such securities are “restricted” and buyer can't resell unless the resale falls under reg D or another exemption.

3. sec must be informed within 15 days

I agree the question is worded strangely. I would immediately eliminate B and D. Leaving me with the other 2 options. Even from the 3 items I typed above I probably would've still gotten the question wrong. The key is to know that a limited partnership interest is a security falling under reg D. I guess now we know 🙂

[Author]

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