[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

[willpassby2014]

FMV of new van – $10,000

Boot received – $ 3000

Total $13000- Adjusted basis 20,000= Loss recognized is 7000

New basis is $20,000-7000-3000= $10,000

This is the answer. Am i missing something here?

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

@Svitlana85, The question pertains to recognized gains, not basis. Gains on like-kind exchanges are equal to the lessor of the realized gain or the boot received. The realized gain in this instance would be 150,000 ((250k-120k)-(350k-70k)) and the boot received is 50,000 (the difference in the relief of the 120,000 mortgage and the mortgage assumed of 70,000). You owed 120,000 and now you only owe 70,000 so in effect you received 50,000. Hopefully that makes some sense.

[willpassby2014]

@svit

350-70+120-250=150 is the realized gain. Boot received is 50,000. we have to take lesser of these. So recognized gain is 50,000 or 150,000 which ever is less. so the right answer is 50,000

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

@CTM= Please look at my answer

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

$HR – Loss will be recognized in like kind exchange. the deferral is only in involuntary conversions

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

@will, I'm confused by your wording. What you're showing doesn't make sense without the facts of the question.

[Anonymous]

If it's a like-kind exchange, which is what I think you are describing, you can't recognize a loss.

[Anonymous]

It could be realized and deferred which would reduce the basis of the new property.

[willpassby2014]

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Sandia]

the lesser boot receive or realize gain reduce the new basis.

FAR - 77 x2 Wiley book & no test bank
AUD - 83 x3 NINJA Test bank 3 time
REG - 80 x1 NINJA Test bank
BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
Ethic 100% Licensed VA CPA

[rachel101091]

For like kind exchanges

a loss will increase the basis of your new asset

so its Basis of new property= FMV of new property – deferred gain + deferred loss

*realized losses are NEVER recognized in a like kind exchange

FAR - 80 (1x)
BEC - 79 (1x)
REG - 83 (1x)
AUD- 85 (1x)
*Becker only*

"Even youths grow tired and weary, and young men stumble and fall;
but those who hope in the Lord will renew their strength.
They will soar on wings like eagles;
they will run and not grow weary,
they will walk and not be faint."- Isaiah 40:30-31

[Anonymous]

Hey guys!

So I waited until a month out to schedule my exam and thus far it hasn't been an issue but looks like it will be this quarter. Can anyone offer some scheduling advice please?

I basically have two options for a test date – Friday May 8 and Thursday May 21. I'll be done reviewing in a week from now hopefully (April 15) and then I'll begin review. I'm working about 45-50 hours per week and devote about 20 hours a week to studying.

I have an OK foundation with everything I've gone through so far but I'm by no means test ready. Would May 8 leave me with enough time to review and adequately prepare, or should I push it off until the 21st? I've been studying all throughout March so I don't want to begin to lose valuable info. I'm so at a loss here 🙁

Thanks!!!

[Gabe]

@cpa that's a tough one…since you've been studying 20 hrs/week since March I tend to think you should sit earlier. Scores release would be May 27th. If you have to re-take, you could study all June then re-take in July. So, I would opt for May 8th, that's about 3 weeks of review, which is great and you're not studying too much and forgetting everything. Will your 50 hr work week end soon (i.e. busy season) or is this a regular 50 hr work week?

AUD: 84
BEC: 76
FAR: 81
REG: 4/3/15

OK Candidate

[Sandia]

@CPA if you do have kids at home.. Take it May 8… you can study every night and every weekend without stop until you test. Sooner is better in my opinion.

Kids take time and very unpredictable. Do your best!!! Spouse can help too

Good luck!!

FAR - 77 x2 Wiley book & no test bank
AUD - 83 x3 NINJA Test bank 3 time
REG - 80 x1 NINJA Test bank
BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
Ethic 100% Licensed VA CPA

[Anonymous]

@Gabe, I'm in public and my busy season lasts until June 1. So it's possible that I could be hit with 60 hour work weeks end of April/beginning of May. But you're right – a beginning of July re-take wouldn't be the worst thing in the world.

@Sandia, no kids and no spouse, just me, myself, and I 🙂 so I could definitely find time to squeeze in more hours and my commute is an hour and a half each way so there's plenty of time for audio notes.

I think I'm definitely leaning toward the May 8 test date…ugh that's so scary! Thanks for the help, guys.

[Author]

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