REG Study Group Q2 2015 - Page 18

  • Creator
    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 - 256 through 270 (of 3,544 total)
  • Author
    Replies
  • #677457
    sam8839
    Member

    @ gabe – Yeah, usually, people who fail these sims score weaker in atleast a few categories. The sims must have really gotten you. I find out next week, but, I'm with you. I felt confident in only a few of the sims. Not sure I got the research right, and 2 other sims were like foreign. I don't know if I still got a chance.

    Also, I got a question for you: Do you know if the research question is worth 7 or 8 points or if the research is worth just 1 or 2 points? I have always wondered about that and if the research is indeed worth 7 or 8 points, it's a big difference maker.

    #677458
    Gabe
    Participant

    sam- ah good luck to you next week!! Keep us posted 🙂 I am not sure about the research question, but logically, there's more chances for points in the other sims with more blanks…so I always assumed the research was worth less, but who knows.

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

    #677459
    Holly
    Participant

    @Gabe I think regardless of which month in the 4Q the property is placed in service, as long as it is the 4Q, the answer would be the same because the calculation is 1.5 (half of three months) and not something specific to the day within the quarter.

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

    #677460
    okcpa2015
    Participant

    @Gabe, the mid-quarter rule applies only if you've purchases over 40% of your personal property in the last quarter of the year, otherwise it would be mid-year.

    So yes it would still be 1.5/12 if 40% of the property was purchased in the last quarter, and the purchase was in October. If not 40% it would be 6/12 since personal property in on a mid-year convention.

    FAR - 91
    REG - 88
    AUD - 98
    BEC - 88

    #677461
    Gabe
    Participant

    @HR and @ok thanks!!

    Also…do we always start double declining? so if 5 yr- 2/5? Or can you direct me to the Becker page that discusses this?

    Thanks all!

    oh @ok- are you from OK, if so what part?

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

    #677462
    Pwrcat
    Member

    So I have a question, hopefully not a dumb one, I am using Roger review materials and he keeps stressing not to bother to memorize amounts for deductions and phase outs as they change every year but the qestions I am getting on the ninja mcqs require specfic knowledge ?!? Also what limits are you all studying for the 179? The 25k 200k?

    I agree with Anna this stuff just doesn't want to stick. Maybe because it is my third test and my brain is done!

    FAR - 87 11/15/14
    AUD - 88 1/26/15
    REG - 91 4/6/15
    BEC - 86 5/11/15

    #677463
    okcpa2015
    Participant

    @Gabe For personal property you would use 200% for 3,5, & 7 year property. But don't forget that for AMT you can only use 150% declining balance and the difference between 200% and 150% would be an adjustment.

    I'm an University of Central Oklahoma grad and I work in Tulsa now.

    FAR - 91
    REG - 88
    AUD - 98
    BEC - 88

    #677464
    Gabe
    Participant

    @ok thanks! So personal prop= double declining. And, gotta love that pesky AMT difference 🙂

    Cool. I am originally from the Midwest and also work in Tulsa.

    @pwrcat- true. Do not memorize all the phase-outs, it's just too much. There are two that are recommended to know- 179 deduction (which is $200k and $25k, like you mentioned) and mom and pop exception for rental (which is $25k if they meet certain qualifications)

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

    #677465
    Holly
    Participant

    @ Gabe & pwrccat I contacted becker about 179 because their book has the $25/$200 limits for 2014 which is incorrect because it was extended. This was their answer:

    Hi Holly,

    The extension took place in mid December retroactively for the whole year.

    Therefore it is not testable until July. But by then 2015 rules kick in and it has expired again. Therefore, the updated amounts are not testable. So we have not updated the book.

    I hope this helps.

    Regards,

    Jonathan R. Rubin, CPA

    Becker Academic Support Team

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

    #677466
    Pwrcat
    Member

    Holly thanks! That's why I was confused. I thought I read the 500k was still in place for 2014.

    FAR - 87 11/15/14
    AUD - 88 1/26/15
    REG - 91 4/6/15
    BEC - 86 5/11/15

    #677467
    Gabe
    Participant

    Wait…so $200/25 is still correct for testing yes? That is what I have read time and time again..

    https://www.another71.com/cpa-exam-forum/topic/reg-section-179-expense

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

    #677468
    Holly
    Participant

    @Gabe Yes, that's what we'll be tested on for 2014 and 2015.

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

    #677469
    Gabe
    Participant

    Ok just confirming HR. Thanks 🙂

    Also confirming…

    Depreciation:

    3, 5, 7, 10 yr prop= double declining

    15, 20 yr prop= 150% declining

    Salvage value ignored under MACRS

    So…1st we do double declining then half year, mid-quarter, etc

    yeah?

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

    #677470
    Holly
    Participant

    @Gabe Yeah, I think that's it…..then there's Real Estate…. This is so much information that we'll never use in the real world. That's what I thought studying for BEC, and then when I took BEC and saw the little that was tested as compared to what I studied!

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

    #677471
    okcpa2015
    Participant

    @Gabe it looks like you got it. Also, don't forget section 1245 and 1250 recapture if you sale any of the property you just listed….

    FAR - 91
    REG - 88
    AUD - 98
    BEC - 88

Viewing 15 replies - 256 through 270 (of 3,544 total)
  • The topic ‘REG Study Group Q2 2015 - Page 18’ is closed to new replies.