[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]

me too, i have gleim test bank open, I enter one invoice and answer one mcq. I can't figure out if it makes A/P's more or less miserable

[CPAfit]

@anna I test on May 28th and I can agree with you 100%. I don't think it would be possible for anyone to retain all the info but we have to give it our best. I am trying to narrow down my problem areas and what I've figured out by now is that, Ethic & professional responsibilities is my favorite and Taxation for entities is my least favorite. Hopefully I can work on these areas over the weekend and be in good shape by exam day. Also, apart from doing MCQs, what else are you focusing on at the moment? I listen to as much Ninja Audio as my schedule allows and it really helps.

[willpassby2014]

zubairs. I know you from prior posts. Do you know how much they would test on BLAW ? I know the concepts ok but not in depth

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

RX transferred equipment to a corporation in exchange for 100 shares of common stock. The equipment had a basis of $120,000 and a fair value of $160,000 which is equal to the value of the shares received. There are three other shareholders who each own 100 shares of stock. What is Martha's basis in the stock?

A $40,000

B $80,000

C $120,000

D $160,000

I have a doubt here. Does this mean all 4 shareholders together hold 100% control? or should we consider only the % of transfer done by transferee and gain should be recognized? HELP HELP…LAT MINUTE CONFUSION

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

@ANNA….Waiting for your explanation

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

willpassby2014,

I think either 120 or 160 since it doesn't specify whether or not 351 applies. But I think since they mention value of stock received it's probably 160? This question sucks

[Anonymous]

zubairs, I tried, but audio does nothing for me, my grandparents used to have a transistor radio on 100% of time, I just immediately stop noticing, so just reading the book or do mcq's.

I am trying to finish blaw and at the same time keep taxation stuff fresh. I also have little things I can't remember well like disproportionate distribution, dual basis, tax credits etc. planned for today

[No_one]

@willbyCPA its 120000/- because when shareholder contributes to corporation its a non taxable event. And When you are talking about nontaxable even we need to take NBV of the asset. (So, no Gain/loss) Exception if it has any liability associated with it than Corporation's basis would be greater of liability assumed or NBV.

So martha's basis= its contribution. 120000/-

Please tell me I am right here 🙂 otherwise have to go back to R3 🙂

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

[No_one]

@Anna You are really doing good. I can see that you are hitting problems with good thinking approach. Like Zubeir, I can say you are in a really good shape, to clear this 1. Good luck for the exam day.

I can relate when you are saying that you don't retain everything..I am feeling the same way..As I am moving forward with revision, I feel I dont know my 1st, 2nd chapter…Oh no…I dont remember rules..and all..Its annoying but we will help each other they way we did so far…

Good luck to all of us. 🙂

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_one, I hope you are right and we all pass, but I am going to continue doing mcq's after my test that's for sure

[No_one]

@Anna : have same strategy in my mind..

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

[willpassby2014]

The answer is 160k. I answered 120 since no gain is recognized if after transfer the controlling interest is greater than 80%

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

Well I don't see how we should be able to tell if this is tax free or not. Should it always be assumed NOT tax free? I don't see enough of this kind of questions to see a pattern

[No_one]

Oh I missed the point about 80% rule. If our contribution gives 80% or more control than its a non taxable event. That time we consider NBV. But here, person is getting 25% (100 out of 400) so it is a taxable event. So, we have to take FMV for the basis.

Am I right?

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

[No_one]

I am mixing things like anything, I can't retain this simple rules…I dont know what will I do next Friday…

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

[Author]

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