[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

[Gabe]

Plan on tackling gifted prop and related party transactions today- anyone have any notes? I still can't grasp which numbers I need to pull…thanks 🙂

CPA, CFE
CISA- Experience will be completed by August 2016

[Gabe]

@angel

SE- deduct all to arrive at AGI

if employers paid for your medical insurance- you CANNOT deduct it

employees- can deduct medical premiums on sch A (if you paid for it with after tax $ apparently), but must exceed 10% of AGI

on the flip side (income)

life insurance premiums always trip me up

* employers can pay up to $50k, everything after that is TAXABLE to you as income.

and life insurance premiums are NOT deductible

CPA, CFE
CISA- Experience will be completed by August 2016

[stoleway]

With regards to medical deductions.

Self Employed…..you can deduct full amount to arrive at your AGI (the medical deduction should not exceed your self employment income)

If you are not self employed, and your employer deduct your medical premiums pre-tax, you cannot deduct any portion of that premium since its pre-tax.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Gabe]

stoleaway- thanks! do you have any pointers/notes for related party/gifted prop transactions?

CPA, CFE
CISA- Experience will be completed by August 2016

[Gabe]

of the following requires filing a gift tax return, if the transfer exceeds the available annual gift tax exclusion?

A.

Medical expenses paid directly to a physician on behalf of an individual unrelated to the donor

B.

Tuition paid directly to an accredited university on behalf of an individual unrelated to the donor

C.

Payments for college books, supplies, and dormitory fees on behalf of an individual unrelated to the donor

D

Campaign expenses paid to a political organization

Answer is C…I chose D. So you CAN gift expenses to a political organization but you CANNOT have a charitable contribution deduction for a political organization…makes sense *rolls eyes*

CPA, CFE
CISA- Experience will be completed by August 2016

[stoleway]

@Gabe

Are you talking about property gifts when the donor is still alive, or property that has been inherited?

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Gabe]

@stoleaway alive but I'll take what I can get lol

CPA, CFE
CISA- Experience will be completed by August 2016

[stoleway]

will do some research and come up with something simple as far as prop gifts are concerned. Stand-by!

Just remember that in general, the donee’s basis is equal to the donor’s basis – this is referred to as the carryover basis.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Gabe]

@stoleaway thanks! It seems to be an area I'm always 50% right about…I really want to nail it down for my re-take

CPA, CFE
CISA- Experience will be completed by August 2016

[OnlyBelieve]

for C corps

S/holders basis in prop contributed is

Adjusted basis

+gain recognized

(liability assumed/boot rec'd)

Corporation's basis in property rec'd is

Tranferor's basis

+gain recognized

If Corporation transfers prop to a s/holder, s/holder's basis is

FMV of prop rec'd

+cash

If liability exceeds basis, the excess is considered gain

Talking myself through it:)

Anything else to add?

AUD - DONE
BEC - DONE
REG - 04/04
FAR - 05/30

[Gabe]

@only looks good.

on the s/h side: if S/H have 80% control after a prop transfer, NO taxable event occurs.

on the corp side: if s/h who contributed prop add up to less than 80% ownership, ALL s/h have taxable event

= FMV or corp int

<AB of prop>

= Gain

*from Ninja notes 🙂

CPA, CFE
CISA- Experience will be completed by August 2016

[OnlyBelieve]

Awesome!

AUD - DONE
BEC - DONE
REG - 04/04
FAR - 05/30

[Holly]

Okay I have officially finished going through every chapter. Now to go back and re-read what I've forgotten!!

BEC - 79
REG - 85
AUD - 5/27/16

[Gabe]

You got it @HR

@only how you feelin? 'bout 2 weeks left.

CPA, CFE
CISA- Experience will be completed by August 2016

[OnlyBelieve]

@Gabe- I feel good! Reset my Ninja stats about 5 days ago…average trending score 93.67 and average score 96%, 900 questions unseen. Hope to see them all this weekend:).

Reading every explanation to every MCQ. I've realized most times, the AICPA center their SIM questions on single topics. So if i am able to read every answer and get the basic concepts, i should be good…..which i think that is what i am doing now.

It's about my fifth go at ninja audio. Sometimes i find myself reciting after Jeff in my car. ITS TERRIBLY CRAZY:) You are never be ready with these CPA exams, so i better be ready!

How do you feel, Gabe?

AUD - DONE
BEC - DONE
REG - 04/04
FAR - 05/30

[Author]

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