[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]

a?

[Anonymous]

200 more mcq until I'm done with all 1,606 becker mcq! Will be done by tomorrow for sure 🙂

[willpassby2014]

I am taking my exams on 29th and i am doing B law now. The corporate tax / scorp i studied i have forgotten. seems like i am not able to crack the nitty gritty stuff. how do you guys manage to keep everything in memory. Do you keep revising the Tax stuff every day. Any tips….greatly appreciated

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

I am doing random tax questions every day, still forget everything all the time

[canaanko]

@willpassby2014

You just need to keep reviewing the material over and over until you know it like your SSN. I took REG today. MCQ was okay, but SIMS were horrible.

[Anonymous]

Answer is A, admitted to the contract in court. I answered B, that he shipped 15 tables, thinking it met the “performance” exception to the Statute of Frauds, but the key is that the question refers to the contract in its “entirety.” Nice job cpa8488 🙂

[Anonymous]

First thing I answered correctly today lol

[jstay]

you guys are going hard on a Friday night, i like it!

@cpa8488, what do you have left in becker? im thinking about doing one more run through, atleast the tax questions before the exam. still have to do those R3 sims lol

[Anonymous]

I just have 200 of R8 remaining. Which I plan on finishing tomorrow. However, I want to re read R3 and R5 and re-do those questions. I was listening to ninja blitz today too. I find it helpful

[willpassby2014]

@canaanko- Good Luck. Thanks for the tip. I hope to see you pass .

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

Question – An S corporation is only subject to the built-in gains tax if it was previously a C corp, correct? This question does not really make it clear that it was a C corp changing to an S corp:

Commerce Corp. elects S corporation status as of the beginning of the current year. At the time of Commerce's election, it held a machine with a basis of $20,000 and a fair market value of $30,000. In March of the current year, Commerce sells the machine for $35,000. What would be the amount subject to the built-in gains tax?

a. $15,000

b. $0

c. $5,000

d. $10,000

Explanation

Choice “d” is correct. The built-in gain for the machine is $10,000, the difference, on the date of the election of S status, between the $20,000 adjusted basis of the machine to the C corporation and the $30,000 fair market value. That is the amount of the gain that occurred while the corporation was a C corporation, and it is also the amount that is subject to the built-in gains tax.

[Anonymous]

It says commerce corp. elects s corp status. I don't see what else it could have been. If not s corp, then c corp is the only option?

[RTCPA]

Hi Guyz

thnx for your reply, 69k was basis of b

any how the basis is = basis of asset given up+gain ecognized+liability assumed+boot givenup-boot received – liability given up

now its making sense 🙂

[RTCPA]

hello one more

Harold, an unmarried taxpayer, purchased a home in a suburb of Chicago on October , 2011. Eighteen months later his employer transferred him to St. Louis and Harold sold his home for a gain of $200,000. Since Harold sold his home because of a change in place of employment and had owned and used the home as a principal residence for eighteen months, the exclusion of his gain is limited to $250,000 × 18/24 = $187,500.

2 questions : a – if the sales was because of employment why we had to pro rata

b – gain is only 200,000 why the calculation was based on 250,000

thnx

[Anonymous]

RTCPA, that doesn't really explain much, would you mind posting the calculation for 69000?

[Author]

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