[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]

kemi22,

business property, not just depreciable

[Anonymous]

@Meddik I know, I just can't get into REG. When I was doing final review for FAR I checked out the free MCQs on cpareviewforfree.com. I am sure you have probably heard of it but if you are looking for additional review, it might be worth checking out. I used it when I was having a nervous breakdown about governmental accounting.

[Kemi22]

Thanks a lot, Meddik. You actually shot 2 stones with 1 bird for me. 🙂 I had just been wondering; what if I am asked for the adjusted basis of the new property. My notes said – deferred gain and +deferred loss but I didn't know how to get those. Thanks for adding that info (deferred G = real G – recog G).

Thanks, Anjanja! I can see that clearly now.

2010:
BEC: 74, 71, 74, 75
AUD: 71, 74, 83
REG: 71, 76
FAR: (I quit) 34, 45

2015:
BEC: 79
AUD: 78
REG: 67, 76
FAR: 56 (trial run), 74, 74, 74, 80!
Thank God. Your prayers are always answered! Do not give up. Thank you St. Joseph Cupertino.

[Anonymous]

I think deferred gain for condemned property is just award received minus basis of condemned property? I don't have it in my notes, but I remember ninja mcq on that:

basis in property 30000

award 50000

new property 52000

deferred gain 50000 – 30000 = 20000

new basis 52000 – 20000 = 32000

[willpassby2014]

Passive investor in 3 activites

X- (30000)

Y- (50000)

Z- 20000

WHAT AMOUNT OF SUSPENDED LOSS TO BE ALLOCATED TO X?

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

willpassby2014,

7500?

[Anonymous]

no wait, 22500?

[Anonymous]

financial statement that needs to be filed in order to perfect security interest, it's not actually a financial statement as B/S, income statement, right?

[Meddik]

@anjanja I believe it's a financING statement, not financIAL

Also, in your example of converted property, I believe the new adjusted basis would be 52,000.

50000 – 30000 = 20000 realized gain, but then that 20k plus 2k more is used toward replacement property

50000 proceeds – 52000 replacement property = 2k loss <—-Deferred & built into the adjusted basis of new property

FAR - 86
REG - 83
AUD - 97
BEC -

[Anonymous]

omg it is financing statement, all this time I couldn't understand what was the deal with filing f/s and how it could possibly perfect anything

thanks!

no, basis was 32000 in that mcq, maybe the answer was wrong? not sure. I will research IRC

[Anonymous]

i do not understand this https://www.law.cornell.edu/uscode/text/26/1033

however from IRS website:

Gain or Loss From Condemnations

If your property was condemned or disposed of under the threat of condemnation, figure your gain or loss by comparing the adjusted basis of your condemned property with your net condemnation award.

If your net condemnation award is more than the adjusted basis of the condemned property, you have a gain. You can postpone reporting gain from a condemnation if you buy replacement property. If only part of your property is condemned, you can treat the cost of restoring the remaining part to its former usefulness as the cost of replacement property. See Postponement of Gain, later.

If your net condemnation award is less than your adjusted basis, you have a loss. If your loss is from property you held for personal use, you cannot deduct it. You must report any deductible loss in the tax year it happened.

[willpassby2014]

Anna- Yes it is 22,500 for the passive loss.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

I don't get it. In my notes it says that all security interest needs is a security agreement with a description of collateral and a debtor's signature or a possession. Isn't the value given necessary for attachment? Or security interest can't become enforceable without attachment?

Under the Secured Transactions article of the U.C.C., when does a security interest become enforceable?

A. A contract is executed between a debtor and a secured party under which the debtor gives the secured party rights in collateral if the debtor violates any of the terms contained in the contract.

B. The debtor and the secured party execute a security agreement describing the transfer of the collateral and, after doing so, the secured party files it with the requisite agency.

C. The debtor and the secured party execute a security agreement describing the transfer of collateral from seller to buyer and the secured party retains possession of the agreement.

Correct D. The value has been given, the secured party receives a security agreement describing the collateral authenticated by the debtor, and the debtor has rights in the collateral.

[Meddik]

From my notes:

Attachment occurs when a security interest becomes legally enforceable.

Which requires

1) Value given (consideration) to support the security interest

2) Debtor must actually have the rights to the collateral

3) Secured interest must be recorded (AKA security agreement signed by debtor)

FAR - 86
REG - 83
AUD - 97
BEC -

[Anonymous]

not in my notes! thanks

I don't know what I am going to do if I get too many blaw questions. Pretty much forgot everything on contracts and negotiable instruments already

[Author]

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