[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]

huh, ok. So what if this same person also has $100000 income from some other source that year and deducts this 3000 against that on their 1040? I think that 3000 wouldn't be affecting basis in the future once it was reduced to 0. Not 100% sure

[No_one]

willbycpa can u please tell us the CPA- question no.? I believe you are using Becker right?

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

[willpassby2014]

anjanja. Assume the $3000 loss is not deducted since no basis is available. Next year when new basis gets formed like , profit made by S crop then this gets combined with that basis. THe $3000 loss id C/F by S Corp until it can find the new basis.

Does this help

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

no one i am using CPA EXcel /Ninj a

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

willpass, I get that it will be combined with the next year ordinary income if they have one. I also agree that future income will increase the basis. However I don't think this 3000 loss will be carried over to decrease future basis. I couldn't find anything confirming that in my notes or anywhere else

[willpassby2014]

Have a question on gift tax .

During 2014, Blake transferred a corporate bond with a face amount and fair market value of $20,000 to a trust for the benefit of her sixteen-year old child. Annual interest on this bond is $2,000, which is to be accumulated in the trust and distributed to the child on reaching the age of twenty-one. The bond is then to be distributed to the donor or her successor-in-interest in liquidation of the trust. Present value of the total interest to be received by the child is $8,710. The amount of the gift that is excludable from taxable gifts is

A. $20,000

B. $14,000

C. $ 8,710

D. $0

If the below question is rephrased that $20,000 will also be paid to the child when the child turns 21 , then is $14,000 annual exclusion is available? Since it says just $2000 which is annual interest is not distributed and accumulated it is considered future interest and no exclusions. is my understanding right.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

yeah that would be present interest then, subject to annual exclusion

something strange is happening. I start reading Business structures chapter and 5 minutes later find myself browsing ikea website. I can't exactly catch the point at which I make a conscious decision to do so, it's like sleep walking or something

[willpassby2014]

ha ha….Business structure is my favorite….for some reason i get all answers correct in that portion. Hope i get some questions in that…..

I usually dont open anything other than another 71 and my study note

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

yeah I tried to just answer some business structure questions before reading a chapter to just see if I could figure it out using my common sense, and scored like 20%. Less that odds ratio!! It literally made me cry like I am a little girl

[willpassby2014]

i think you are studying under pressure to complete it in a hurry. Dont let time pressurize you. The same thing happened to me for contracts and UCC. Then i started studying afresh slowly without skimming through and i got them pretty ok. The key is not to rush because they test us on unique things a lot …..please dont think i am preaching….just my 2 cents

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

oh that's for sure, I study like a headless chicken so to speak, I just can't help it

[Anonymous]

found it!

IRC §1366(d)(2) holds that any loss suspended because of lack of stock and debt basis shall be treated as incurred by the corporation in the succeeding taxable year with respect to that shareholder.

[Double-entry Deviant]

Hi all – don't get this one – what do you guys think?

Correct answer is “C”….thought it was “B”….

Among which of the following related parties are losses from sales and exchanges not recognized for tax purposes?

A.

Father-in-law and son-in-law

B.

Brother-in-law and sister-in-law

C.

Grandfather and granddaughter

D.

Ancestors, lineal descendants, and all in-laws

REG: 5/30/15 - 77
FAR: TBD
BEC: 8/31/15 - 70, 73, 1/8/16 - 77
AUD: 6/1/16- 73, 8/2/16

[Anonymous]

yes, because those are lineal descendants

if you think B is correct, why wouldn't A also be correct?

[Tncincy]

@anajana How are you doing research questions?

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

[Author]

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