[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]

coloradorit,

your posts appear with 10 hours delay for some reason

[willpassby2014]

Realized gain/loss= 10,000+3000=13,000 – 20,000 =7000 loss

Recognized loss= 0 ( Since you can recognize less of gain or boot received )

Now Basis= BASIS GIVEN UP – BOOT RECEIVED = 20,000-3000=17,000

7000 LOSS IS DEFERRED and can be adjusted when you sell this truck

BEC Passed
FAR Passed
AUD Passed
REG Passed

[ThumbsUp]

Has anyone ever gone through Becker and took note of the most heavily tested areas of each lecture? I think this would really help people the week before the test.

For example, in R7 Bankruptcy, the priority claim order Becker claims to be the most heavily tested.

AUD- 22, Just missed it...maybe next time!
REG- 14, so close!!!

[Anonymous]

I take notes while listening to the lecture the first time through. It takes a little bit longer to get through the lectures but I find it helpful

[Anonymous]

Oh dear God.

I took the Gleim exam rehearsal over a week ago and was really concerned I only got an 83 – I was expecting much better (this was my worst score in all 4 rehearsals), and I was hoping for plenty of room for error above a 75 since this is my one and only shot.

Today, after a ton more studying, I took Ninja's full length exam and got a 71. I was about to cry, then I saw that I got zero points for 2/6 Sims because I wasn't familiar with the Ninja research Sim layout… on gleim and on the exam, there is a little box for each paragraph/subsection/whatever, and on Ninja there is not, so I left out the paragraph # and was marked wrong… But I think on the actual exam, I would have done okay given the layout, the fact that I hadnt practiced a single Ninja Sim, and the fact that I chose the right section both times. If I hadn't messed those up, I would have had an 83 (excluding the value of those 2 Sims) or an 85 (marking them both right). Relief from what felt like a cannonball in my stomach. If the Ninja score holds true (excluding those sims), I should hopefully be okay… Anyone care to share their exam rehearsal vs actual scores?

[Anonymous]

Anna, you mean they don't show up until 10 hours after I post or the time shows 10 hours ago for you?

The stuff on the last page was from very late last night, mountain time. Now it's 5 pm mountain time.

[Anonymous]

coloradorit,

this is very ambitious, I have average score of around 73 for gleim mcq's. I am afraid if I did take the exam rehearsal it actually would make me cry

[Anonymous]

I do not have a clear understanding about the tax position. Every single source has contradicting information

[Anonymous]

You mean hoping for an 85+ on the rehearsal is ambitious? Haha, coming from you, that means a lot. You seem to know A LOT on this exam.

I am overloaded and would have let it go already if I didn't only have the one shot (if I fail it once, I have to go back for my master's to get my cpa – not happening, so 3 years of work would be wasted).

What tax position? Something I can help with?

[Anonymous]

I really don't think I know enough, I would need another 2 months maybe. Gleim questions seem so freaking twisted comparing to ninja.

Can you please elaborate on that masters thing?

[Anonymous]

Question:

R4 Sim 5 Q4:

A computer purchased on March 30 for $100,000. Other furniture in the amount of $80,000 was purchased in November.

Becker's answer: 5 yr, mid-quarter convention, $35000.

Explanation: More than 40% of assets were purchased in the fourth quarter, therefore use mid-quarter convention. 35% is the amount in the table for first quarter purchases. 35%*100,000 = $35,000.

I don't understand this one. Is that “fourth” a typo? The computer was purchased in the first quarter, and correspondingly the 35% is the depreciation rate for first quarter. Does that purchase of other furniture have anything to do with the depreciation amount of the computer?

Thanks!

[Anonymous]

CPALDCPA,

I don't think it matters if it's a computer or a furniture as long as it's all sec 1245 property. 40% of it was purchased in the last quarter => all of it is calculated using mid quarter convention. Not sure what is 35% here?

[Anonymous]

Anna,

35% is the deprecation rate to calculate the depreciation of the computer in year 1. In the MACRS table, the first year depreciation according to Becker is 35%*100,000 = $35,000. The question asks for the computer's depreciation. I don't understand why Becker mentions “More than 40% of assets were purchased in the fourth quarter, therefore use mid-quarter convention”, because Becker is using the first quarter rate 35% for the question, and the computer is not purchased in fourth quarter.

[Anonymous]

why is it 35% though? https://www.irs.gov/publications/p946/ar02.html scroll down to A-5. I don't think A-2, A-3 or A-4 even currently applicable.

you don't really need a table. If it was half year, it would be 20% (100000/5*2)/2 = 20000

when it's a mid quarter it's 5% (100000/5*2)/8 = 5000

mid quarter is used because 40% of ALL property is purchased in 4th quarter

[Anonymous]

unless I am waaaaaay off

[Author]

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