[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

[skoog]

My understanding is that the IRC is the most authoritative source.

[Anonymous]

Just got home from taking that asshole we call REG. Are you ready? I'm about to divulge the nature of the CPA examination (not really).

It is a horrendous, sadistic test that will make you question all your life decisions that have brought you to this point in your life. That's its nature.

Like what someone posted the other day, first testlet was decent, second was a little worse, third was horrible, and the SIMs were unspeakably cruel.

Is it too soon to check my score? Yes? Well, I'll be doing it anyway, probably several times a day until score release.

Good luck to everyone who has not yet subjected themselves to this awful experience.

[Anonymous]

FWIW, I believe IRC is the primary source as well.

[Double-entry Deviant]

How's everyone's studying coming along? I'm taking mine tomorrow morning at 8:00 am…I'm trending at 74 – 75%. I'm scoring worst on business law – ugh – so much stuff there – not sure if I should keep focusing on that area or move on to my other weak areas.

I've passed REG before (and lost credit) but this time, I do feel scared about passing it! 🙁

REG: 5/30/15 - 77
FAR: TBD
BEC: 8/31/15 - 70, 73, 1/8/16 - 77
AUD: 6/1/16- 73, 8/2/16

[Anonymous]

@didato good luck!!

@anj good luck!!

[Anonymous]

There was one SIM from hell on my test that I had NO IDEA what to do. I looked up the IRC and found maybe one out of 6 questions I had regarding treatment. I've just scoured my entire Gleim text. It was nowhere in it. The topic was covered, but nowhere near in the amount of depth required to be able to answer that SIM. When trying to compute my score, I gave myself 1/7 correct on that one, and I'm not sure I even got that. Here's hoping it was a pretest!

Anna, I see what you're saying about my posts not showing up. Weird; doesnt do it in other threads.

[Double-entry Deviant]

Anyone understand this one?

Kent Corp. is a calendar-year, accrual-basis, C corporation. In 2014, Kent made a nonliquidating distribution of property with an adjusted basis of $150,000 and a fair market value of $200,000 to Reed, its sole shareholder. The following information pertains to Kent:

Reed's basis in Kent stock at January 1, 2014 $500,000

Accumulated earnings and profits at

January 1, 2014 125,000

Current earnings and profits for 2014

including the effects of this distribution 60,000

What was taxable as dividend income to Reed for 2014?

A.

$60,000

Incorrect B.

$150,000

C.

$185,000

D.

$200,000

REG: 5/30/15 - 77
FAR: TBD
BEC: 8/31/15 - 70, 73, 1/8/16 - 77
AUD: 6/1/16- 73, 8/2/16

[Anonymous]

I was doing this corp AMT SIM and the answers don't match what Roger has in his book. Do you guys have a link to preferences/adjustments?

[Anonymous]

didato,

current earnings + accumulated earnings = taxable dividends

[Anonymous]

coloradorit,

probably pretest, did you have 1 research?

[skoog]

C

[Meddik]

185,000? C-Corp ===> Reduce distributions by current E&P, then accumulated E&P. All distributions to the extent of E&P are considered dividend income. The remaining $15,000 would reduce Reed's basis to $485,000.

If they had said current E&P WITHOUT the effects of the transaction was 260,000….wouldn't you first reduce current E&P by the 200k (greater of: FMV or AB, less any related liability) to get to 60k? And then calculate Reed's taxable dividend income in the same manner to reach 185k?

FAR - 86
REG - 83
AUD - 97
BEC -

[Anonymous]

Ugh was doing this SIM using the most freaking authoritative source https://www.law.cornell.edu/uscode/text/26/11, but Gleim has different ##. I am screwed

[willpassby2014]

To me this is tricky

On October 1, 2014, Donald Anderson exchanged an apartment building having an adjusted basis of $375,000 and subject to a mortgage of $100,000 for $25,000 cash and another apartment building with a fair market value of $550,000 and subject to a mortgage of $125,000. The property transfers were made subject to the outstanding mortgages. What amount of gain should Anderson recognize in his tax return for 2014?

A. $0

B. $ 25,000

C. $125,000

D. $175,000

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

is it b?

[Author]

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