[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]

@imgonnabacpa Good luck tomorrow!!

I just got back from my Sunday exam. MCQ testlets were fair IMO, and I felt that Ninja provided me with adequate preparation.

Testlets went Med, Hard, Med.

Simulations on the other hard were pretty brutal, but that is to be expected. I definitely bombed one completely (please be the pre-test sim 🙂 ). I should have partial credit on the rest.

Now comes the hard part, the wait for the May 5th score release..

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 🙂

[Anonymous]

imgonnabacpa: Good luck tomorrow. Be sure to check in and share your thoughts.

Troblin: Sounds like we're all saying the same thing this quarter. Did you just get 1 research Sim? If so it's possible that the sim you didn't like could have been pretest. And it sounds like everyone's sims are pretty similar. I felt the same way. One sim that I bombed on, one that I felt pretty good about and the rest partial credit.

As I mentioned in the score release thread, looking back at my research question it could have gone either way. It was either extremely easy or flat out impossible. If you knew the concept, it was super simple to find. If you didn't know what concept it was referring to, it would have been, flat out, impossible to find or guess on. Luckily I recognized it right away. Like I said before, I immediately saw that it was referring to “elephant” so when I typed “elephant” into the search it came right back with the answer for me. But if I had no idea that it was referring to “elephant,” there would be no way I'd even have had a starting point to work from.

[Anonymous]

Can anyone explain the following to me?

Thompson's basis in Starlight Partnership was $60,000 at the beginning of the year. Thompson materially participates in the partnership's business. Thompson received $20,000 in cash distributions during the year. Thompson's share of Starlight's current operations was a $65,000 ordinary loss and a $15,000 net long-term capital gain. What is the amount of Thompson's deductible loss for the period?

A. $15,000

B. $40,000

C. $55,000

D. $65,000

Answer: C -> $60K – $20K – $15K = $55K for deductible losses.

In order to solve this problem, I thought you first added the $15K L-T gain to Thompson's basis ($75K = $60K+$15K) then deduct the loss of $65K, which leaves $10K. Next, I thought you deducted the $20K in distributions.I realize subtracting the $20K would cause a negative balance, but can someone explain this?

[Anonymous]

Good luck imgonnabacpa!

[Troblin]

@Angel

I got two research sims and they were both pretty easy (*knock on wood*). Unfortunately, I'm pretty sure the one I bombed was NOT pre-test.

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 🙂

[jstay]

good luck @imgonnabacpa

[Anonymous]

Atlantic1984,

all I can think of is that the loss is limited to partners basis. If it's similar to S corp basis, you take your basis of 60 minus the distribution of 20 to get 40. Then you add LTCG 15 and basis = 55, so all you can deduct is 55. 10 is carried forward indefinitely until offset or until the partnership is disposed. But I didn't know it was working the same way for partnerships

[Sandia]

Yes it does… … ALWAYS GET THE basis in the partnership 60K-20K-15K=55K then gain or loss in the partnership…

Because it is + and – the order is important.

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

[imgonnabacpa]

URGENT !!

If a tax payer pays some tax ( case 1: > 90% and in case 2 <90%) before the due date and files for extension and pays the balance before the extension date , what is the int and penalty to be filed ?

I think <90% – pay int and penaltty both

<90% case – pay just tax + int @ ?

say Total tax is 2000 and he paid 1900 in case 1 aand 1600 in case 2 before April 15. and balance in the 6months extension period.

What would be the amounts he would finally pay ?

What if he does not py within the due extension period?

What would be the case if its a corporation ?

With or without the $1000 rule

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

[Gabe]

Best of luck @imgonna! You're gonna own it!

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

[Anonymous]

I'm having a tough time reading the questions for REG. I'm wondering if I'm not understanding the material/concepts, or just having trouble understanding the question they are asking. For example:

The uniform capitalization method must be used by:

I. manufacturers of tangible personal property.

II. retailers of personal property with $2 million in average annual gross receipts for the three preceding

years.

A. I only

B. II only

C. Both I and II

D. Neither I nor II

My thought process:

I know it's definitely not (II) because it's average gross receipts of $10M+ for last 3 years.

And I also know that the UNICAP rules MUST be used by manufactures only WITH gross receipts over $10M. So that makes (I) incorrect. Therefore, I chose answer D, however, the solution said the correct answer is A.

What do?

[Anonymous]

actually i think 10M rule applies to those who resale property

and per my book it's 10M of annual receipts

[Gabe]

@troblin I know which sim you are talking about and I also assume it is NOT pretest :/ (also got 2 research sims).

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

[Anonymous]

General consensus is that if you get 2 Research questions, 1 of them is the “throw away” pretest question. Since you both got 2 Research questions, than it's likely that's where your pretest was.

I'm really hoping that the Sim I struggled the most on was my pretest. I only had the one research question so it's possible. The Sim I struggled with was “different” than the rest but it was on a topic I should have known. But the AL was 100% useless for it. The rest of my Sims were on topics that I had studied and reviewed but a lot more complicated than I was expecting. One I think I did really good on and the concept was very simple and straightforward. And the AL helped me find one piece of it.

[Troblin]

@ Gabe and Angel.

Bummer, I completely bombed that SIM. Passing is going to be close since I partial credited a couple of the others.

Crossing my fingers for the May 5th release date!

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 🙂

[Author]

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