[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

[jstay]

@dpd just wondering, if you dont mind sharing, how are you scoring in becker? my last two progress tests of 72 questions i got a 100 and a 98. R1-R4 im consistently scoring in the 90s when i go through the questions again. idk i dont think i memorized the answers and i still read the questions and do the calculations, etc but idk i feel like theres no way i can perform like that on the actual exam. Did you take the second final exam?

[Anonymous]

@willpassby2014, neither one. If a merchant seller, tender of the goods is not sufficient. Buyer has to take possession. II is just incorrect…there is no indication that simply using the seller's truck provides for full possession by the buyer. Possession is the key word in Risk of Loss + Merchant seller.

If it was a “garage sale” type sale of goods, and the seller was not a merchant in the goods, “tender” to the buyer is sufficient. Tender simply means making the goods available for pick up. Thus, if thieves stole the goods from the garage sale non-merchant before the buyer had come to pick them up, risk of loss had already passed to the buyer.

[willpassby2014]

JSTAY YOU ROCK. I never know merchant and non merchant diff

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

DPD516,

I understand deferred taxes from FAR point of view and from taxation, but with AMT it's just too much to wrap my head around. It's like another level and I can't see what goes where and when. Why even bother, probably not in the scope of the exam anyway

[willpassby2014]

DPD516 and all. Thank you. Now i will never forget this in exam

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

@jstay, I have taken a few 50 question and a few 100 question progress tests in the last week, and I am scoring between 94-100. I have DEFINITELY seen every single question before, though, so I don't put too much stock in my progress tests scores. However, I know the concepts and think I could answer correctly if I saw a similar question, so that's mildly comforting. On the second practice exam, I averaged the same score, 77%, but just like you, on the Sims, I entered “0” for blank cells, and also put ( ) around negative answers and it counted me wrong!! I didn't go back and recalculate, I just moved on with studying. I think we're going to do great! 75….all we need.

[Anonymous]

@anjanja, I agree. That is just the logic I would have used if I got hit with that god-awful question on exam day.

[jstay]

@dpd yeah those sims really pissed me off! thats great 77% and didnt recalculate, thats probably atleast a 79/80, probably more. looking at the metrics, between my two becker scores (69 & 74) and my ninja trending (right now 90 but after my initial go through i was at 82 on just “new questions” so i use that because anything after, ive already seen and potentially know the answer just from remembering it) i would hope its enough for a 75. plus generally being a part of these study groups is helpful.

[Anonymous]

If a taxpayer takes the Sec 179 deduction, can they not also take depreciation expense on the same property for that year?

[Anonymous]

@DPD, you can take 179 and depreciate the remaining basis in the first year.

[jstay]

@dpd yes! it goes in this order:

1. apply section 179 deduction (25,000, or less if over 200,000)

2. Bonus depreciation

3. MACRS depreciation (if any is applicable)

theres a question in ninja about this, i dont think it gave number but asked what order it was applied in

[willpassby2014]

What do you mean by goods are identified in the sales contract?

Title passes from the seller to the buyer only if the goods are identified in the sales contract

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

Yeah, see Becker did not even explain what Bonus depreciation is, much less even go into detail on Sec 179. Just trying to get the basics down.

[jstay]

so say we buy a 200,000 deliver van (5 year). we would deduct the 25,000 tog et to 175,000

then depreciation would be calculated as 2/5 x 175,000

of course taking into consideration half year/mid quarter- if applicable

but did i get that deprecation right? 2/5 x 175 ?

[jstay]

@willpass, what were the other answers..sometimes its all process of elimination if you are sure the others cant be right. but think about it how can i sell you something and give you title to it…if the goods were never identified in the contract.

[Author]

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