[jeff]

Welcome to the Q2 2016 CPA Exam Study Group for REG.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

[Anonymous]

@ future ninja
Thank you for the question, I think I understand the deduction of partnership losses up to the partner basis for the partnership interest.
adjusted basis of property contributed = $16,000
less mortgage assumed by other partners (18,000)
75%of 24,000
partner basis never goes below 0 so partner basis is zero and as partnership interest is a capital asset so storm must recognize the capital gain of $2000.

I am confused with the partner's at the risk basis.
If you have any question on risk basis then please share with us.
I don't know the real difference in between the partner basis and the partner risk basis.

[Future Ninja]

@monikernc – it doesnt make sense right? But by the book, the rule says: Adjusted Basis plus Gain Recognized plus Share of Liability less 100% of Partnership Liability. Partnership as a pass-through entity must share somehow of business liability and directly affect their basis.

@Ano – The way I compute it is this way:
Given Problem:
25%, AB=====16,000…..Mortgage==24,000..(75%)
……..FMV====50,000

Personal Formatted solution:
AB……..16,000
GR……….2,000 (24,000*75%)= 18,000 less AB=16,000 = 2,000 Rule: if mortgage exceed AB = indicates Gain
ShLiab….6,000 (24,000*.25%)
PLiab…..(24,000)
Basis……0 (zero

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

@Ano – im not also sure about partners risk basis but the way i understood, the partners basis should not below zero. If the result is negative in all of those figure, the answer should be zero. anyone here can further explain as i need to know more too.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

@monikernc – i was confused the first time. U know what I did? I took handwritten notes of basis questions and love them even if REG is not lovable.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

@Ano – if the question is how much is the partnership basis? what is the answer?

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

@ future ninja for question you just posted
strom basis would be 0

[Future Ninja]

@Ano – yes Zero.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

Anyone? Help please:

Which of the following may qualify for exempt status under IRC 501(c)(3)?
A. Individual.
B. Medical School.
C. Local College
D. Partner.

I need help please.

– See more at: https://www.another71.com/cpa-exam-forum/topic/reg-501c3-exempt-organization#sthash.aUyKEUxC.dpuf

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

@future ninja
To qualify, the organization must be a corporation, community chest, fund, articles of association, or foundation. However, an individual or a partnership will not qualify.
So only 2 choices are left medical school and local college
medical school seems to be in public interest ,so I think it would be medical school.

[Anonymous]

@ future ninja
this, I found on IRS
An educational organization is one whose primary function is to present formal instruction that normally maintains a regular faculty and curriculum and that normally has a regularly enrolled body of pupils or students in attendance at the place where it regularly carries on its educational activities. The term includes institutions such as primary, secondary, preparatory, or high schools, and colleges and universities.
So local college can also be exempt organization.

Do you know the correct answer?

[Future Ninja]

@Ano – no. Im sorry. I dont know the correct answer. I answered Medical School on actual exam but still I failed with 74. Studying for exempt Org now.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

@Ano – thank you. I can see the light at the end of this REG tunnel. Thanks for sharing.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

@Ano – do you mind if i share another question for your enlightenment?

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

@ future ninja
sure, your questions helping to all of us.
Thank you for sharing these questions.

[Future Ninja]

@ Ano

Which of the following may NOT qualify for exempt status under IRC 501(c)(3)?

a. Religious Org
b. Literary Org
c. Foreign Bank with Local U.S. Branch
d. Professional Football League

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Author]

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