[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]

@Anna yea that is the same thing I was looking at…

[Anonymous]

Roger's mnemonics for exceptions of discharge:

A credit card SLUT because I got an STD

[Meddik]

I'm definitely more worried about REG than FAR. With FAR, if I didn't know how to do something I could start out with some journal entries and apply some basic concepts and have a solid chance of figuring it out. REG allows the same to an extent, but with so many different exceptions/conditions for certain treatments it seems like MORE information…despite being half the pages of my FAR book.

FAR - 86
REG - 83
AUD - 97
BEC -

[Anonymous]

@Meddik I agree with 100%. I feel like with FAR you could kind of muddle through if you didn't know. With REG there is no muddling through or educated guessing. You either know it or you don't. I think it is much harder to study for.

[MaLoTu]

Can anyone explain this to me?

Edouard owns a 30% interest in the profits and losses of the EFG Partnership. Edouard acquired his interest by contributing land to the partnership that had an adjusted basis of $30,000 and a fair market value of $65,000 on the contribution date. Soon after forming the partnership, the land is sold by the partnership to a third party for $70,000. How much of the $40,000 tax gain from the sale will the partnership allocate to Edouard?

a) $40,000

b) $1,500

c) $3,500

d) $36,500

The answer is (d), but why does he get more than 30% of the profit if he contributed the property in exchange for his 30% interest?

[Tncincy]

Ok so memorial day and the days before was torment. I did not get ANY studying in. I did listen to the audio on my way to Chicago, but it just wasn't enough. I am absolutely exhausted. I don't know why I agreed to go with my family, they NEVER cooperate with me when it comes to this test or studying. It is amazing how many times I have rescheduled only to be set back again. So, I have rescheduled for 76, I am not going to change again (Lord Willing) and I am back home and back to study…..Good luck gang for those going in a few days.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Kemi22]

Trying to understand: basis of property to partner/shareholder: (not considering any other transactions or liabilities etc):

1.Partnership: formation, distribution, dissolution; the partner's basis is always the adjusted basis of the property?

2. Corp: formation = adjusted basis; distribution = FMV and dissolution = Adjusted basis?

I am trying to master this basis thing but it gets confusing sometimes. Any help will be much appreciated.

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.

[MaLoTu]

kemi – from what I understand, a corporate dividend is calculated at FMV because it is as if the corporation sold the property. I don't think that a property distribution is FMV, I think it just reduces the basis by NBV. I am not sure in the case where it is a liquidating dividend.

Here are my two stand-by Flash Cards for Partnerships:

Calculation for RECOGNIZED gain = Lesser of Boot Received or Gain Realized —> Gain Realized = FMV-Adj. Basis —> Value should be net when taking and receiving a liability

Calculation for New Adjusted Basis = Old Basis + gain RECOGNIZED (never recognize a loss) – Boot Received

There are definitely some caveats, but those two helped me work through most all the partnership basis questions.

[Anonymous]

MaLoTu,

read about built in gain rules. If the property is sold within 7 (or 5?) years, the difference between FMV and the basis is allocated to the partner who contributed this property. The rest is allocated according to the %% of interest

35000 + (5000*0.3) = 36500

[Anonymous]

tncincy,

force your family members to be self sufficient! 🙂

[Anonymous]

kemi22,

I think it's more complicated than what you wrote

[willpassby2014]

Question for motivation

If the Internal Revenue Service is forced to seize an individual's weekly paycheck in order to pay past-due taxes owed by the individual, the individual has the legal right to keep an amount of weekly income equal to:

A.

the individual's weekly salary times 1/2.

B.

the individual's weekly salary times 1/3.

C.

the current federal hourly minimum wage amount times 40.

D.

the individual's standard deduction and allowable personal exemptions divided by 52.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

Meddik,

I think my REG book just as thick as FAR. I had to literally break it in two parts so that I could carry it in my bag and read in the train to work

[Anonymous]

willpassby2014,

haha i remember this one. Doesn't sound like much, does it. I got it wrong because I thought there is no way it could be that little

if i didn't know, i would answer B

[willpassby2014]

answer is D. i had the same doubt as you. How can they manage with 269 dollars with 2 exemption and standard exemption….brutal.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Author]

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