[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]

I am trending 86, but there are still 200+ blaw questions I've never seen

[princeCPA]

I am trending at 86% and it is BLAW which is killing me. Too much information and surprisingly when I failed last window my BLAW was strong on the score card. On ninja MCQ it is the worst.lol

BEC 79
FAR 86
AUD 79
REG 90

[Anonymous]

I have the same issue. I still have 300 unseen business law questions, and it is my lowest @ 73%. I'm thinking tomorrow I'll probably be better off cramming the tax sections to make sure I really understand it rather than struggle with blaw and not fully understand anything from it before the day of the exam.

[willpassby2014]

Are they deductible for medical expenses

Cost of wigs relating to hair loss resulting from chemotherapy treatments: $2,000

Annual physical exam: $750

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

not the wig i guess

[Anonymous]

Gee, Anna, every time I think I know something, you prove me wrong! 🙂

Regarding this materially vs actively participating, I am still unclear. What I understand now is this, please correct me if I'm wrong: Rental is always passive, but if actively participating, you can deduct up to $25k (phasing out between $100k and $150k MAGI). If materially participating, that is a more stringent standard than active, so you may deduct the losses as well. (That would clear up why Gleim confused you with that question.)

Thanks!

[willpassby2014]

LOL…Since it is due to chemo it is allowed. This was a simulation question and i got the final answer wrong due to this.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

Which of the following statements relating to the law governing an agent and principal is INCORRECT?

A An agent has a duty to put the interest of her principal ahead of her own self interest.

B A principal has a duty to compensate his agents.

C All of an agent’s authority to bind the principal is terminated when the agent is fired.

D A principal’s duty to reimburse an agent for expenses may be modified by contract.

Any one ?

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

I would guess C, because an agent may still have apparent authority (not actual authority) after a contract is terminated.

[Anonymous]

Still going crazy trying to memorize these tax credits…

Child and Dependent Care Credit

3 Cs and 5 words = 35%

If anyone could share mnemonics they've come up with or learned, I'd greatly appreciate it. 🙂

[Anonymous]

thanks, didn't realize about the wig!

[Anonymous]

coloradorit,

I am glad I am not the only one obsessing over this. This is exactly the thing that I don't understand. I guess we should go to irs website and compare activity vs materially participation requirements to see if material participation overlaps active participation, do you know what I mean? It's kind of late now, I'll do it tomorrow

In roger's book it says “active rental losses partially deductible”

[Anonymous]

I was just thinking about it again and I realized that the word “material” participation is probably not used in context of like marxism or mamamaterial girl, but in context of materiality like in audit? Was this clear to everybody but me?

[Anonymous]

No, Anna, I think you helped me figure it out. 🙂

As you said, active participation is a less stringent requirement than material participation. Therefore, if it is active, it not necessarily material, but if it is material, it definitely active.

Therefore, both active and material participation would qualify one for the deduction.

And, yeah, I personally thought of it as material in the audit sense, but that's probably bc I studied AUD for 2 years, haha.

[Anonymous]

Here's another conflict between Gleim and Ninja:

On March 1, Green went to Easy Car Sales to buy a car. Green spoke to a salesperson and agreed to buy a car that Easy had in its showroom. On March 5, Green made a $500 down payment and signed a secu­rity agreement to secure the payment of the balance of the purchase price. On March 10, Green picked up the car. On March 15, Easy filed the security agreement. On what date did Easy’s security interest attach?

Ninja says: Correct: B March 5

Before a security interest attaches, there must be a security agreement (oral or written) between the debtor and the secured party, the secured party must give value, and the debtor must have rights in the collateral. Green gave value ($500) and signed a security agreement on March 5.

Gleim says it's March 10. I agree with Gleim because, as Ninja states, the secured party must give value. Yet it explains that Green gave value. Green is the debtor, not the secured party. Easy gives value on March 10, when Green picks up the car. Anyone agree or disagree with me? These questions are so confusing!

[Author]

Replies