[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]

why is the statue of limitations for contract 4-6 years, but 3 years for draft and 6 for note? These little things are killing me

[Anonymous]

@didato, I feel like these concepts regarding basis weren't covered well in Roger or from what I hear Becker also. But from my understanding, there is no gain Recognized, since you are xfering for >80%. Because the gain is not recognized by the s/h and it is deferred. Therefore, the corp's basis in the bldg would be $40,000 (the xfer's adjusted basis). And the basis of the bldg to the S/H would be 30,000 (adjusted basis – liabilities transferred).

[PasstheCPA7]

Hi guys,

Can someone answer this? When we talk about C-Corp cash or property distributions, a distribution in EXCESS of the shareholder basis is taxed at capital gain. Is this capital gain taxed at 15% (long-term rate) just like an individual taxpayer has a 15% capital gain rate?

[Anonymous]

dzyj, the gain would be recognized if shareholder was paid cash or some other property

[willpassby2014]

what is difference between Trouble question and missed last time in ninja?

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

@anna and others….i am confused. Should passive loss be combined only with passive income. Here they are netting everything

In the current year, a taxpayer reports the following items:

Salary $50,000

Income from Partnership A, in which the

taxpayer materially participates 20,000

Passive activity loss from Partnership B (40,000)

During the year, the taxpayer disposed of the interest in Partnership B, which had a suspended loss carryover of $10,000 from prior years. What is the taxpayer's adjusted gross income for the current year?

A.

$20,000

B.

$30,000

C.

$60,000

D.

$70,000

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

Is it A? You can claim all the passive loss in the year of the disposition of a passive activity. I am not sure what happens if the carryover loss is higher then current income, probably is carried to the next year

[Anonymous]

@anjanja, yea you're right, seems like there are exceptions to everything with REG. There is also a gain recognized when you xfer a property to a corp in exchange for stock(control) but the liability exceeds the s/h basis.

@willpassby2014, you're on the right track. However, there is an exception. If you dispose of the passive activity you can net the loss against your gross income. I'm fairly certain the answer is A.

[willpassby2014]

Thanks guys. The answer is A. i think i did miss the exception when i was studying. I will not forget this in exam.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[RTCPA]

hi

I think the 40000 is coming from basis +gain recog- liability, but the 30000 from where its coming from,

any one has clear rule hw this being calculated for each for corporation and for partner

[willpassby2014]

My ninja trending score is 80%….how are others doing. Still i am not in review stage and my exams are on friday at 6.30 PM

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

I'm trending in the low 80% also, and still in the review phase. My exam is this tuesday and I feel like I need 2 more weeks of studying to really understand everything.

[princeCPA]

@RTCPA When a shareholder transfer property to corporation where the corp assumed liability, to recognize gain the assumed liability should be greater than the basis. In the question above the corp assumed 10,000 liability on a basis of 40,000 so the shareholder will not recognize a gain. The basis is calculated for corp: shareholder's basis + shareholder's gain=40000+0=40,000. This my understanding—

BEC 79
FAR 86
AUD 79
REG 90

[RTCPA]

princeCPA

thnx

[Anonymous]

I think the major point here with this assumed liability thing is, it is basically a deferred gain that only needs to be recognized by one side, which i suppose is a shareholder, this is all i got lol

[Author]

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