[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]

OMG! What are the chances? You know you've done a ton of MCQs when one of them uses the full name of a person you actually know!

Bobby Bell, married filing jointly, has adjusted gross income of $62,000 (including his salary and his wife's salary, interest, and dividends). In addition, Bobby and his wife had a capital loss of $8,000 and capital gains of $5,000 and $1,000. What is Bobby's adjusted gross income after considering the capital gains and losses? (Answer is $60k)

Bobby Bell is an old friend of mine…. Right wing and a taxidermist (I lean left/independent and am big into animal rights) so it was odd that we were friends, but he was great. Haven't seen him in about a decade. Hahahaha.

[Pradeepkbala]

what are the changes in REG for July 15 exam

Can update the details

[Anonymous]

Can someone explain why they used the FMV of $500,000 for Corely's transfer…is it because if the formation is taxable then you have to use FMV?

Porter, the sole shareholder of Preston Corp., transferred property to the corporation as a contribution to capital. Two years later, Corley transferred property to the corporation in exchange for a 10% interest in corporate stock. The property transferred was valued as follows:

Porter's transfer Corley's transfer

Basis $50,000 $250,000

FMV 200,000 500,000

Answer: $550,000. Porter's transfer is not taxable because the 80% control test is met. The corporation's basis in the property is the basis of $50,000. Corley's transfer is taxable because the 80% control test is not met. The corporation's basis in the property is $500,000. The corporation's total basis in the properties is $550,000 ($50,000 + $500,000).

[RTCPA]

hi any one knw wht is the answer & why?

Park purchased from Derek Truck Sales a truck which had serious mechanical problems. Park learned of the defects 6 months after the date of sale. Five years after the date of sale Park commenced an action for breach of warranty against Derek. Derek asserts the statute of limitations as a defense. Which of the following statements made by Derek is correct?

A clause in the original contract reducing the statute of limitations to 9 months is enforceable.

Park was required to bring the action within the statute of limitations as measured from Derek’s tender of delivery.

Park was required to bring the action within the statute of limitations as measured from the time the breach was discovered or should have been discovered.

Park is precluded from asserting under any circumstances that the statute of limitations stopped running.

[Anonymous]

idk, C?

[Anonymous]

well obviously, who wouldn't know this, right

Tom Lewis, an individual taxpayer, paid an annual personal property tax amount based on the total weight of his automobile in 2014. Select the appropriate tax treatment on Tom's 2014 return.

A.

Not deductible on Form 1040

Incorrect B.

Deductible in full on Schedule A—Itemized Deductions

C.

Deductible on Schedule A—Itemized Deductions, subject to a threshold amount of 2% of adjusted gross income

D.

Deductible on Schedule A—Itemized Deductions, subject to a $500 floor and a threshold of 10% of adjusted gross income

You answered B. The correct answer is A.

Payment for registration and licensing of a car may be deductible as a personal property tax only if it is imposed annually and assessed in proportion to the value of the car.

[Anonymous]

Would like a clarification re: Individual AMT Adjustments:

A) Medial – do you add back the portion of medical expenses in excess of the 10% AGI threshold? So in other words, if AGI is $80,000 and there is $9,000 of medical expenses, you add back $1,000 for AMT? Or do you add back the full $8,000?

B) Mortgage Interest – here you add back only the interest on home equity loan (up to $100K) correct?

Thank you!

[Anonymous]

czechchamp,

no, deduction in excess of 10% agi is allowed, but home equity loan interest is added back

[willpassby2014]

interest on Home equity loan is added back but acquisition indebtness is not added back

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

Just rescheduled it to sunday morning 8.30 from friday evening…hopefully the extra bucks is worth the 75….please…..

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

I would too, but they don't even have sundays available here

[willpassby2014]

Anna. I have read the automobile tax based on weight. It is not allowed. It has to be based on value. Its given in Wiley text.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

I guess I wasted my sarcasm on you then haha

[willpassby2014]

ha ha..you got me 🙂

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

there also some other topics I see on ninja that are not covered in roger's book at all such as empowerment zone thing, household employees etc. I hope it's not something commonly tested

[Author]

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