[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

[Peterman25]

and real property – commercial – 39 years straight line mid month convention? i'm trying to go totally off memory..

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[okcpa2015]

Yep, residential real property is 27.5 and commercial is 39. Any realty is mid-month.

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

[Anonymous]

Spent the last two hours hammering Like / Kind Exchanges. I dug out my old Tax textbook (2013 edition so it's still pretty up to date).

I think I'm getting it now. It's one of those things that really helps to sketch out to see what's going on. Also, Becker will ask for Realized and Recognized Gains and Losses. No joke, it took me half an hour to figure out that there was a difference of concepts in questions. I couldn't figure out why one question was a “3,000 Gain” and the next question which looked identical was “zero.”

[WANNABE_CPA]

@NJPRU, Lauren…Congratulations for passing REG and double congratulations for being DONE !!! … i have been off the forum since i took my exam, but i digged out your posts to see your status for Reg. I passed Reg as well with an 80, least expected score. I was just hoping for a 75. Thank God it is done.

@NJPRU…you might have scored like a 99, did you? You aced your Becker final exam. I managed to get an 80 with the becker score of 68, i wonder how much you got with an 88?

@AmorD.. I am sorry, i was hoping you be done with it too. But you are almost there, just stick to it and get it done.

I still have AUD to finish, got a 69. Starting today and probably taking it in April.

Good Luck all.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

Congratulations, Wannabe! Good luck on your AUD. I am sure you'll get it in Q2!

[Anonymous]

NINJA Audio says interest income and dividend income are not passive income but portfolio income.

However, I have notes in my file from Becker book under S corp's tax on passive investment income which enumerate:

Examples of Passive Investment Income:

5 [RAIDeR] {GOSS => Gains on Sale of Securities are excluded}

R – Rents

A – Annuities

I – Interests

D – Dividends

E

R – Royalties

So what actually are interests and dividends? Passive or NOT PASSIVE?

[Anonymous]

REG Fact:

“Fringe benefits are deductible for non-shareholder employees and those employee shareholders owning 2% or less to the S Corporation.”

I don't really understand how does a fringe benefit become deductible. Let's say I am a non-shareholder of an S Corporation, I have this $500 fringe benefit, do I include this in my itemized deduction? Under what section of Schedule A?

Calling on all tax experts in the house, please help!

Thanks guys!

[OnlyBelieve]

Amor D- i think Ninja is right. On page R3-51 of becker, it states what items flow through to an S corp shareholder and it lists Portfolio income as including interest, dividends, royalties, and all capital gains and losses.

However, the definition of passive income means an item in which a taxpayer does not materially participate, which will include rental income and royalties.

What i have tried to do is to know which items are separately/non-separately stated for S corps, because any question i have come across on S corps have tried to play around with these two terminologies. ninja has a mnemonic in his blitz called PP1231 for separately stated income items(which stands for portfolio income, passive income and section 1231)

(By the way, i am using an updated becker book-where they make you pay $15 because there has been an update- so the page i cited might be slightly different if you dont have the update)

AUD - DONE
BEC - DONE
REG - 04/04
FAR - 05/30

[Anonymous]

Is V1.1 no longer updated? I don't mind spending another $15 but I don't think I can handle additional material at this time. I can look up to EBook online anyway. I gave up highlighting and red-marking my book from R5-R8.

Thanks anyway for your very detailed explanation. I really appreciate it.

[Anonymous]

I'm using v1.1 which I believe is good until July. After July, the new tax numbers are testable so you should get the updated book only if your testing after July.

[OnlyBelieve]

cpa8488 and Amor, you are right, v1.1 is the current version.

AUD - DONE
BEC - DONE
REG - 04/04
FAR - 05/30

[Anonymous]

I think, I found a good MCQ for my confusion about fringe benefits paid by S corp. I misunderstood the context of “Fringe benefits are DEDUCTIBLE FOR NON-SHAREHOLDER employees and those employee shareholders owning 2% or less to the S Corporation”. It should be DEDUCTIBLE TO S CORP.

I reviewed Becker's lecture on AAA from R3 and I don't think Tim Gearty explains the topic clear enough. I checked all the three sets of SIM samples from R3 to find a good example of AAA problem, I found nothing.

If anyone can post a good AAA SIM problem, please share it here. I would really appreciate it.

[hunter32]

Quick question on Section 179. I get how the 25,000/200,000 rule comes into play, but is it the same with the 25,000 threshold for an SUV? i.e. You buy an SUV for $30,000 so you would only be able to deduct $20,000 as Section 179?

BEC - 80 (Becker)
AUD - 92 (Becker+NINJA MCQ)
FAR - 87 (Becker+NINJA MCQ)
REG - 90 (Becker+NINJA MCQ and Audio)

[Gabe]

hunter- correct you can deduct $25k of the $30k IF the SUV is used for business purposes.

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

[hunter32]

Sorry if it's not clear to me. Would it be the full 25k or would the excess dollar for dollar reduction rule apply making the deduction 20k in this case (5k in excess of the 25k limit)

BEC - 80 (Becker)
AUD - 92 (Becker+NINJA MCQ)
FAR - 87 (Becker+NINJA MCQ)
REG - 90 (Becker+NINJA MCQ and Audio)

[Author]

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