[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]

Willpass, a?

[MassiveDynamic]

Willipass – A? The CPA doesn't need to verify or even actually see the documentation but they do need to ask if it exists.

B 85 Aug 2015
A 81 Jan 2015
R 78 May 2015
F 76 Jul 2015
DONE!!

[willpassby2014]

Perfect answer

BEC Passed
FAR Passed
AUD Passed
REG Passed

[MaLoTu]

OMG. SO. BORED!

I have been studying as much as I have time for, but I am having a hard time keeping my head in this. My test is on Wednesday. I have today and tomorrow to work really hard, but Sunday I am leaving until Tuesday night on a mini vacation. I am sure I will be able to study on the trip, but blah.

I am scoring consistently 75% on Corporations (R3 for Becker) and in the 80%s for Business Law and Professional Responsibilities.

Sorry to vent, but I think I hit the studying wall!

[Anonymous]

I don't really have much energy left to care

[Anonymous]

Which of the following would be considered a tax-deferred transaction?

A.A tract of U.S. real property for a piece of foreign real property

B.An airplane for a Hummer

C.A statutory merger or consolidation (Type A)

D.An automobile for a light truck

Correct answer:C . The following from explanation ” A Type A statutory merger is usually completed as a stock-for-stock swap without a payment of cash, qualifying as a like-kind exchange.” But in Becker R4-17 mention “nonrecognition treatment …used in trade or business or held for investment (except inventory, stock , security)

Why we still choose Answer c since it is a stock swap? It contradict the explanation from Ninjn MCQ

Thanks

[Anonymous]

I just came across this question, it's not formatted, but we only need a basis of the building which is 40000. So I guess no gain is recognized by a shareholder when the mortgage is assume by the corporation

Lind and Post organized Ace Corp., which issued voting common stock with a fair market value of $120,000. They each transferred property in exchange for stock as follows:

Adjusted

Percentage of

Property

Basis

Fair Market Value

Ace Stock Acquired

Lind

Building

$40,000

$82,000

60%

Post

Land

$ 5,000

$48,000

40%

The building was subject to a $10,000 mortgage that was assumed by Ace.

Question: 10 What was Ace’s basis in the building?

A. $40,000

Answer (A) is correct.

In a Sec. 351 transaction, the corporation’s basis in the transferred property is equal to the adjusted basis of the property to the shareholder plus any gain recognized by the shareholder. Since Lind recognized no gain, Ace’s basis is $40,000.

B. $30,000

C. $82,000

D. $72,000

[No_one]

@Didato:

You can take divd. recd deduction smaller of taxable income or dividend income.

But the moment you see taking divid recd ded..will create loss or adds up to loss..Take full divid recd deduction (don't take smaller taxable income ded amount)

As per becker If you are looser take a bigger piece of a pie, Don't wait.

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]

Can someone explain me “Mom and Pop” exclusion?

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

[Anonymous]

Gleim is using up to $500k sec 179 deduction on prop up to $2M. Ninja is using $25k deduction on prop up to $200k. Does anyone actually know which one to use for the test? Obviously, makes a huge difference.

[willpassby2014]

@anna. – Assuming liability is not the key answer to why no gain is recognized. Its the controlling interest. If the controlling interest after transfer of property is 80% or more no gain is recognized. The adjusted basis of transferor is what we should take….am i missing something

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

Life insurance premium on partners' lives (proceeds to partnership)- Is this is a separately stated expense or part of normal partnership expense.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

No one – Are you talking about rental activity? I dont follow becker so i dont know what is mom and pop

BEC Passed
FAR Passed
AUD Passed
REG Passed

[jeff]

Colorado – NINJA is correct.

You go by the tax law effective 6 mo ago.

Anything congress passed or extended and retroactively applied at the end of 2014 for 2014 tax law has no bearing on the CPA Exam.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

willpassby2014,

I am pretty sure the gain is still recognizable even if there is a controlling interest, if cash was paid etc., but not when there is a relief from liability (why not???). I am in fact exhausted by this contributed property topic, I can't find any clear rules, just come across some random mcq's once in awhile. I am just going to stop obsessing over it. If I can, that is

[Author]

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