REG Study Group Q2 2015 - Page 17

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    Topic
  • #192517
    jeff
    Keymaster

    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

Viewing 15 replies - 241 through 255 (of 3,544 total)
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  • #677442
    Holly
    Participant

    The Becker simulation question I asked earlier has been answered by Becker:

    Hi Holly,

    Thanks for pointing this out.

    Yes, the facts should state 800.

    I hope this helps.

    Regards,

    Jonathan R. Rubin, CPA

    Becker Academic Support Team

    BEC - 79
    REG - 85
    AUD - 5/27/16

    #677443
    Gabe
    Participant

    Thanks for the help @cprv!

    In response to a previous question, I have taken MANY exams on the last day in the afternoon and have never had a problem getting them in on time for the earlier release.

    @Amor- I remember you had some like kind exchange notes- any chance you could post them again? I am going back through like-kind exchange with more detail.

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

    #677444
    Anonymous
    Inactive

    Exchange of Like-Kind Business/Investment Assets (tangible)

    o Key Words to Remember:

    Tangibles

    Business Trade-Ins

    Swapping Real Estate

    o Except: 5 [PRISS]

    P – Partnership Interests

    R – Real Property in different countries

    I – Inventory

    S – Stock

    S – Securities

    o Timing Requirements

    (A) 45 days => to give up the property

    (B) Earlier of 180 days or due date of the TP’s ITR (including extensions) => to receive the property

    o If FMV (Old) > AB, there is a realized gain

    Realized G/L = FMV (Old) – AB (Old)

    OR

    Realized G/L = FMV (New) – AB (Old) + Boot Received – Boot Paid

    Recognized Gain = The lower of Realized Gain OR Boot Received

    Deferred G/L = Realized G/L – Recognized G/L

    Basis (New) = AB (Old) + Recognized G – Boot Received + Boot Paid

    OR

    Basis (New) = FMV (New) + Deferred L – Deferred G

    o For Non-Like-Kind Items

    Basis = FMV (New) + Boot Received

    #677445
    Anonymous
    Inactive

    @Gabe, do you have detailed notes for Casualty Losses? Becker has only one page for casualty. I really need to understand this whole concept inside out.

    Thanks!

    #677446
    Anonymous
    Inactive

    My problem with REG is that this stuff just doesn't stick. I keep flipping pages back and forth because I forget the carry forward limits, phase outs and all that. I completed all mcq's on individual taxation in roger's test bank, ninja and gleim and yet ask me anything about farmers or limits on itemized deduction, or coverdell thing or whatever, there is no way i remember.

    Also, the code is just unreadable. All these “such”, such this such that. I am using Gleim book as a reference now instead of authoritative literature

    #677447
    Gabe
    Participant

    @amor thanks!!

    I don't have a lot of notes on casualty losses…what are you having problems with?

    Casualty loss-

    1. < of AB or decrease in FMV (before/after casualty)

    2. deduct insurance proceeds (if any)

    2. deduct $100/per incident

    3. deduct 10% of AGI

    So, facts:

    AB- $50k

    FMV before- $200k

    FMV after- $100k

    Insurance proceeds- $1k

    AGI- $200k

    < of $50K and difference ($100k) = $50k

    <$1k- insurance proceeds>

    <$100/incident>

    <$20K (10% of AGI)>

    = $28.9k casualty loss

    Loss must be sudden, unexpected, or unusual. Normal wear and tear does NOT constitute casualty loss.

    Note: corporations can take 100% of casualty loss.

    Hope this helps! Let me know if you have any other questions. I know Ninja has a casualty loss sim.

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

    #677448
    Gabe
    Participant

    @an AL is pretty useless for REG unfortuantely. However, the more I use it the easier it is. Keep plugging along and don't get caught up in all the phase outs- I'd only know the mom and pop phaseout and 179 deduction for sure.

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

    #677449
    Anonymous
    Inactive

    @Gabe, thanks.

    After taking REG on 2/23, I realized my weak spots are casualty loss, AAA, and farmers' income. Once and for all, I want to know them inside and out before I start with my entire study plan for my third attempt for REG in Q2. I just took BEC last Saturday, it was 12 days only after REG, so I am mentally all over the place. I was more hopeful to pass REG than BEC so waiting for BEC is just based on my hope for a miracle. If I fail BEC too, I am not too sure what to take first in Q2. I have to pass them both in Q2, otherwise AUD totally expires. And I am starting a new job on Monday:(

    #677450
    Anonymous
    Inactive

    I have been waiting for my performance rating report from the State Board Office to come in the mail for the last three days now since the score release 3/10. The mailman already stopped by and still no report in my mailbox today. Grrrwwwlllll!

    #677451
    Gabe
    Participant

    @amor ah no! Since your score was so close I bet it was something having to do with the SIMS. I got my score report back and scored comparable/stronger in every MCQ category and weaker on SIMS. Reading some other threads and that seems to be the case for a lot of folks…Sending positive thoughts to you for BEC! Let me know if you have any more questions

    I am really focusing on basis, like kind exchanges, and distributions (inside and out).

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

    #677452
    sam8839
    Member

    @ amor – I was curious on your score report and what categories you scored comparable or stronger in. I asked about this in one of the other threads, but, I wasn't sure if you saw it! I am still waiting on my score as I took it on 3-3.

    #677453
    sam8839
    Member

    @ gabe – do you remember which categories you were comparable or stronger in? Did you have any weaker areas on your score report?

    #677454
    Gabe
    Participant

    sam- comparable/stronger in all MCQ areas, weaker on SIMS…in other words, I really bombed the SIMS.

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

    #677455
    Anonymous
    Inactive

    @Sam, I am sure I missed your question from the thread. I am really anxious to see my score report. Hopefully, it will be delivered tomorrow. I will let you know as soon as I get it.

    I am presently studying S corporation from its inception till liquidation.

    #677456
    Gabe
    Participant

    On December 1, 2014, Jim Miller placed in service office furniture (7-year life), which cost $28,000. Jim did not elect Section 179 expensing or bonus depreciation. The office furniture was the only asset purchased during the year. What amount can Jim claim as depreciation under MACRS for 2014?

    Correct A.

    $1,000

    B.

    $2,000

    C.

    $4,000

    D.

    $7,000

    So the calculation is 28k * 2/7 (double declining) * 1.5/12 (mid quarter)= $1k

    My question (sorry if dumb)- is midquarter ALWAYS 1.5/12? or is it 1.5/12 because the prop was bought in December? For instance, if bought in October, what would be the calculation?

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

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