[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

[jstay]

@CPA8488…answer to your two questions…is it D & A?

The contract question- illegality would make it void? or is it C- Bankruptcy? I'm going with D

For the Tax time limit question– A..3 years? I think you answered the answer for “Refund Claim”

@Angelwatch Good luck today, hopefully your last time sitting. Good luck to all taking this beast this week

[jstay]

Ok here I go on Section 1231, 1245, and 1250:

1231 – personal and real property

– treated as ordinary income to extent of depreciation

– taxed at long term capital gains rate

– ordinary losses are deducted from ordinary income (can be carried forward – 5 years?)

1245 – personal property (M&E)

– Gain to the extent of Accumulated Depreciation is ordinary income, beyond that it is a capital gain axed at long term rate

1250 – Real property

– Gains to the extent of Depreciation OVER SL are treated as ordinary income

Anything else?

[Gabe]

@cpa- D is correct. If party dies, I believe services are transferred but it does NOT discharge you of your duty.

Also..A is correct for the reasons jstay stated above

Clopins- Do not skimp on business law…keep drilling into it, it’ll start to sink in.

@Troblin- you got this!!

@imgonnabe good luck to you as well! You can do it!

@jstay- looks good to me…I had a write up of all that maybe 10 pages back. I'll see if I can find it 🙂

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

[Anonymous]

– ordinary losses are deducted from ordinary income (can be carried forward – 5 years?)

I don't remember this one, wouldn't it be carried back 2 forward 20 years though?

[Anonymous]

Is anybody taking detailed notes? I do and it's taking forever. Should I just stop doing it?

[Gabe]

from the IRC: Nonrecaptured section 1231 losses. Your nonrecaptured section 1231 losses are your net section 1231 losses for the previous 5 years that have not been applied against a net section 1231 gain. Therefore, if in any of your five preceding tax years you had section 1231 losses, a net gain for the current year from the sale of section 1231 assets is ordinary gain to the extent of your prior losses. These losses are applied against your net section 1231 gain beginning with the earliest loss in the 5-year period.

So..I think it's more netting gains/losses going back 5 yrs.

edit: another link 🙂 https://loopholelewy.com/loopholelewy/15-selling-your-business/selling-your-business-18-computing-nonrecaptured-loss.htm

So I think you can carry it forward 5 yrs.

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

[hunter32]

anjanja,I took extremely detailed notes when I was first going through the material. Business law felt like I was writing the whole chapter. I think it's good to do that at first but it loses its value, especially with blaw. I found that after taking the notes I really knew the material but I had no idea what the questions were really asking.

BEC - 80 (Becker)
AUD - 92 (Becker+NINJA MCQ)
FAR - 87 (Becker+NINJA MCQ)
REG - 90 (Becker+NINJA MCQ and Audio)

[Gabe]

I think notes are great…but like Hunter said, with blaw you're basically re-writing the whole chapter. Start digging into MCQs and making notes on ones that trip you up or don't make sense.

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

[Anonymous]

so it's taxed as ordinary loss, but if there is no ordinary gain to net it against, it's carried forward 5 years?

It doesn't say anything in Roger's book other than: “since the loss is treated as ordinary loss, it's fully deductible with no limits”.

Thanks!

[Anonymous]

I feel like it helps absorbing the material and engaging another memory mechanism, but it's taking so long. I tried recording myself and then listening, but it's unbearable, and the accent, I just can't

I do mcq's during the commute, usually like additional 60 questions per day. I wish my commute was longer!

[hunter32]

Yeah, I had to ice my wrist a few times. Everytime I thought of the amount of time I was spending just taking notes, I thought of the tv I'm buying for myself when I'm done lol.

BEC - 80 (Becker)
AUD - 92 (Becker+NINJA MCQ)
FAR - 87 (Becker+NINJA MCQ)
REG - 90 (Becker+NINJA MCQ and Audio)

[jstay]

@anjanja I was looking at a coworkers tax book, so its probably a lot more detailed

[jstay]

@hunter32, that's the key! just keep thinking “this is only temporary, this is only temporary”

[Anonymous]

yeah tell that to my husband haha, he is ready to murder me

[jstay]

haha anjanja your scores are awesome! as long as you keep it up you can definitely get through this and only have BEC left

[Author]

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