[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

[Troblin]

Gotchya. Thanks. So the question is asking what the revised basis of the stocks are based upon the distribution of the preferred stock? I had no idea that you used the pro-rated FV of the securities on the distirbution date to determine the new basis.

Thanks for the info.

FAR: 85(11/22/2014) - Becker(full)/Ninja MCQ (5 day cram)
AUD: 79 (2/1/2015) -Becker/Ninja MCQ/Ninja Notes
REG: 84(4/19/2015) -Becker/Ninja MCQ/Ninja Notes
BEC: 83 (7/13/2015) -Becker/Ninja MCQ/Ninja Notes

Date I Got My Life Back!: 8/4/2015 🙂

[Svitlana85]

@cprv19 the question is so vague and doesn't make sense but it pops up in all of my study materials. I thought I was missing some key info, maybe it's just one of those CPA things that don't make sense :/

CPA Excel/Wiley/Ninja Notes/MCQs

FAR Feb 2014 85
AUD Aug 2014 88
BEC Nov 2014 85
REG Feb 2015 71 Retake April 16, 2015

[Anonymous]

@Troblin all your doing is allocating cost (basis) to the shares based on what they are worth. the preferred stock is worth 100 dollars so it got a basis in proportion to that. that preferred stock is pretty much something that you have bought with that 1,000 dollars so they want you to allocate some of the cost to those preffered shares

@Svitlana85 yea im not sure why B is wrong

[willpassby2014]

I am unable to understand if we can include John since he is more tha 24 years old

During 2013, Mr. and Mrs. Benson provided

substantially all the support, in their own home, for their son

John, age twenty-six, and for Mrs. Benson’s cousin Nancy, age

seventeen. John had $4,100 of income for 2013, and Nancy’s

income was $2,500. The Bensons paid the following medical

expenses during the year:

Medicines and drugs:

For themselves $400

For John 500

For Nancy 100

Doctors:

For themselves 600

For John 900

For Nancy 200

What is the total amount of medical expenses (before

application of any limitation rules), that would enter into the

calculation of itemized deductions on the Bensons’ 2013 tax

return?

a. $1,000

b. $1,300

c. $2,400

d. $2,700

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Svitlana85]

Does anyone know the definition of unqualified endorsement?

CPA Excel/Wiley/Ninja Notes/MCQs

FAR Feb 2014 85
AUD Aug 2014 88
BEC Nov 2014 85
REG Feb 2015 71 Retake April 16, 2015

[Svitlana85]

Just looked it up and age doesn't matter. Only maters the citizenship, relations and if they live with you if farther than a cousin or farther and also if you paid more than 50% of their medical expenses

CPA Excel/Wiley/Ninja Notes/MCQs

FAR Feb 2014 85
AUD Aug 2014 88
BEC Nov 2014 85
REG Feb 2015 71 Retake April 16, 2015

[OnlyBelieve]

@ will D?

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

[willpassby2014]

Answer is D 2700

BEC Passed
FAR Passed
AUD Passed
REG Passed

[OnlyBelieve]

Here's my explanation.

for medical expense,

The definition of a dependent for medical expenses does not consider the dependent's gross income or joint return requirement. Thus, there is no limitation to the dependent's gross income when it relates to medical or dental expenses.

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

[willpassby2014]

Only believe – can you please explain your answer

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

Another 30 NINJA MCQ done. I like to do 30 question blocks and take a break in between. I'm averaging 80% on these blocks and have my trending up to 76%. I, definitely, feel that this is starting to come together but I've still got a LONG ways to go.

[OnlyBelieve]

@will- since the benson's provided substantially all the support for John, he qualifies as a dependent and can be claimed on the benson's tax return. When it comes to medical expense, if and only if the claimant cared for the dependent for more than half the taxable year, they can deduct the dependent's medical expense regardless of their income level

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

[OnlyBelieve]

point of correction- he exceeds the gross income limit of about $3,950(not sure about this number but i know it's somewhere close to 4k), so he does not qualify to be claimed as a dependent, however, only his medical expense can be deducted because medical expense does not consider gross income limit.

get it Angel:)

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

[willpassby2014]

thanks for the clarificaton

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Holly]

@Gabe sorry for the slow response. I was not referring to income phase out for dependent medical expenses earlier. To be able to claim a qualifying relative as a dependent their income has to be less than the exemption amount, however; to claim their medical expenses that test isn't applicable.

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

[Author]

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