[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]

Section 179 -> for equipment placed in service in 2014; Max total purchase price $200K and Max deduction $25K.

$ per $ phase out starts beyond $200K.

[princeCPA]

Thanks!!

BEC 79
FAR 86
AUD 79
REG 90

[Anonymous]

When you get that appointment reminder…..

[jstay]

@cpa8488, havent gotten mine yet but i was so close to switching it to Wednesday yesterday, i think its too late now though because im within 24 hours. but this time two weeks we'll be on our toes for score release

[Anonymous]

Remember: Deep breaths 😉

[Anonymous]

I don't think I can learn anything more if I had more time to study. About to give it my all today and take tomorrow off. Haven't had a day off from some time of studying in over 2 weeks!

@jstay yah it's probably to late for you to switch. 2 days aren't going to a difference so just wait

@angel thanks! I'm trying to remember that!

[Tncincy]

@cpa8488 You will do fine…..that's all you can do is your all. We hope this will be a pass for you. I am so nervous I feel like I am all over the place. I know I just have to keep at it. Well, time to study.

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

[Gabe]

You got it @cpa!!!

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

[No_one]

Becker CPA- 06515

Lane, a single tax payer received a salary 160,000/- and 15000/- in S corp in which he was not materially particpated.and 35000/- passive loss from real estate activity in which he was materially particpated. Lane's modified AGI is 165000/- what amount of real rental activity is deductible?

A) 0

B) 15000/-

c) 25000/-

d)35000/-

Answer is 15000/-

I am confused..How come we can deduct 15,000/- He was materially participated in real estate activity so its not passive right? Plus his agi is above 150000/- so mom and pop exception is phased out too..So I think answer should be “A”.

Sorry friends not trying to confuse you all but this question is driving me crazy…Please help me to understand.

CA Candidate
FAR: You are down...
Aud: Surprised me...Thanks
BEC: 75% work done
REG: It's 80 but I am 100% done 🙂

[Anonymous]

no, still passive

[jstay]

yes the mom and pop is phased out, however he has another passive income activity (S corp) which has income of 15,000. Real estate by definition is always passive (unless your a real estate agent? idk check that out, but pretty sure its passive. Passive income can only be offset by other income. Thus we can use the 15,000. hope this helped and didnt confuse you more

[Anonymous]

@No_one, all rental and real estate activity is considered passive. General rule is that passive losses can only be offset against passive income. The “materially participate” test only applies to the mom and pop exception. If they qualify for the mom and pop exception, they can deduct up to $25,000 of passive activity losses. The $25,000 is reduced by 50% of excess AGI over $100,000, and is completely phased out over $150,000. Thus, Lane does not qualify for the Mom and Pop exception but can still offset losses up to her passive income of $15,000.

[tgwadez11]

Morning All! Could really use some help on some things. I am just confused about what basis a shareholder receives in a nonliquidating distribution? Adjust basis? FMV? Also, I'm confused on the differences between a partnership and S-Corp distribution? And also nonliquidating vs. liquidating? Sorry, but this is frustrating the hell out of me b/c I feel this is something that should be coming easy and I should know. If someone could explain these, that would be much appreciated! Thanks!

AUD (PASSED) - 56, 91
BEC (PASSED) - 80
REG (PASSED) - 68, 74, 77
FAR (PASSED) - 78

[Anonymous]

@dpd were testing on the same day! How do you feel?

[jstay]

@tgwadez11, thats a lot to explain, lol post a couple questions when you come up to them and we'll try and help. sometimes its easier seeing a question and explaining it as well as learning it

[Author]

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