[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

[imgonnabacpa]

Hi Everyone,

I am new to this community though I have been reading a lot on this portal.

I failed REG twice with a 74 even after doing 100% Becker. I have recently purchased NINJA SIMS also but am not liking it. Maybe I am used to the GUI of Becker Questions which is close to Exams. I plan to take the exam in 3 weeks from now but did not study for th last three weeks except maybe 200 questions in all these days. For me Taxation of entities is shown a week area.

Please advice me how to handle it and pass REG this time or else I will lose my credit for the exam already passed.

Please advice.

Regards,

BEC - 78
AUD - 69,72,78
FAR - 73, 77
REG - 74, 74, April 20(Monday). Not anymore (Fingers Crossed xxxxx)

[Gabe]

If you know you're weak in taxation of entities, hammer MCQs from Ninja until you really understand it. Post questions here when you really don't understand something. We're all here to help 🙂

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

[OnlyBelieve]

Thanks Gabe “every time I see these “word play” questions I chuckle to myself and say, “dang it CPA exam, go home, you're drunk” lol”

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

[Holly]

Which of the following statements is correct with regard to an individual taxpayer who has elected to amortize a premium on a bond that yields taxable interest?

A The bonds basis is reduced by the amortization

B The bonds basis is increased by the amortization

C The amortization is not treated as a reduction of taxable income

D The amortization is treated as an itemized deduction

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

[jstay]

hrsexton, A?

[willpassby2014]

okcpa2015. Thank you. Thats good thinking. Yes the answer is D

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Holly]

@jstay Yes, it's A. The answer doesn't give any other explanation that rewording the question.

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

[Anonymous]

About to start studying the tax chapters. I was doing the ethics and business law this whole time. I'll be posting questions 🙂

[Anonymous]

A premium paid on a bond will reduce taxable interest received for the bond and decrease the basis as it is amortized. If you paid 110 for a 100 face value bond the 10 premium will be amortized and that amortization will reduce the basis from 110 to 100 and reduce the taxable amount of interest income received on the bond.

[OnlyBelieve]

HR- A…..Amortizing a bond premium means that, over the life of the bond, you use a part of the premium to reduce the amount of taxable interest includible in your income which reduces the basis in the bond

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

[Gabe]

What if it was the other way around, we bought a bond at a discount…would there be any implications to the basis? I seem to remember when studying for FAR we had to add interest to increase the bond to it's face amount. Any ideas?

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

[jstay]

yeah Gabe, I believe your correct

[stoleway]

@gabe…Discount amortized will increase your interest income, it will also increase your bond basis in the long run.

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

Mass-CPA

[Gabe]

@stoleaway that's what I remembered from FAR, just making sure it was still accurate for REG.

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

[Anonymous]

anybody have a good mnemonic for gross income for individual tax? I looked up a few old threads but none of them cover all of them. The closest I found was “WAT IS UP” which doesn't include interest,dividends, bus inc, capital gain/loss, rental, k-1 and other inc

[Author]

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