[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

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Andyred04]

@mtaylo24, I can tell you've done a lot of studying since your previous REG attempt! When is your next attempt? You seem ready!

FAR: 80 (Gleim, Ninja Notes, Ninja MCQs)
REG: 87 (Gleim, Ninja Notes, Ninja MCQs)
BEC: 87 (Gleim, Ninja Notes, Ninja MCQs)
AUD: 8/27/16

PA Candidate

[mtaylo24]

@AndyRed04, Actually, I've been studying for BEC and plan to sit for that, then come back to REG.

I still don't know how I got a 55%, I didn't think the test was that bad. The testlets obviously didn't get harder though, and you know how that goes. Sims maybe? Test anxiety? Who knows lol…

Can't wait to knock this one out, hoping to sit in June.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Blue.auditor]

@Andyred04, Thank you so much.

Good luck in your exam.

FAR 90 - 11/16/2015
BEC 81 - 2/14/2016
REG 87 - 5/23/2016
AUD - 8/8/2016

[Tncincy]

Oh goooooodneeeess…..changed the date again. just not ready.(don't feel good, have not got to sims yet 🙁 ) Can't seem to study consistently, should have been ready april 2, then april 29, well going for Mid May. I wanted to take Far in May but I guess I can't start the other till I take Reg. Hopefully, my piece meal studies will pay off till I can get pass the TAX DEADLINE….Ok, rant over back to work.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[rithzz]

Robert had current-year adjusted gross income of $100,000 and potential itemized deductions as follows:
Medical expenses (before percentage limitations)
$ 12,000
State income taxes
4,000
Real estate taxes
3,500
Qualified housing and residence mortgage interest
10,000
Home equity mortgage interest (used to consolidate personal debts)
4,500
Charitable contributions (cash)
5,000

What are Robert's itemized deductions for alternative minimum tax?
a.
$25,500
b.
$21,500
c.
$17,000
d.
$19,500

Can anyone explain this one to me? Mainly confused on the medical expenses one.

AUD: 78
BEC: 81
FAR: 73, 85
Reg: 84

[Credit Revenue]

Amount above 10% of AGI. The answer is C right?

A - 79 expires 4/30/16 need a pass on REG
B - 78
F - 80
R - 83!!! Can live again!

[rithzz]

You're right the answer is C. What I don't understand is I thought Medical Expenses are “add back” to AMTI which would mean it wouldn't be an itemized deduction. Similar to the State and Real Estate taxes. Am I missing something?

AUD: 78
BEC: 81
FAR: 73, 85
Reg: 84

[Credit Revenue]

Only the $10,000 is an add back. The itemized deduction piece (amount above 10% of AGI) is not an add back. I don't love this question either. It's making you look at things from a different perspective. AMT is hard enough straight forward. The main take away is charitable contributions, home mortage interest (for home improvements), and medical expenses in excess of 10% of AGI do not have to be added back for AMTI. So if you start with AGI (example here) instead of taxable income (how you have learned it) those truly are deductions for AMTI from ADJUSTED GROSS INCOME not Taxable income. I wouldn't try to over think it if it's not clicking. Maybe look at it again in a couple of days.

A - 79 expires 4/30/16 need a pass on REG
B - 78
F - 80
R - 83!!! Can live again!

[Anonymous]

Anyone able to help with a quick question?

Scheduled for REG May 9th. Using 2015 Becker…..will the exam test on 2016 amounts such as standard deduction etc?

Thanks…

[Credit Revenue]

Not until July. May is 2015 #'s

A - 79 expires 4/30/16 need a pass on REG
B - 78
F - 80
R - 83!!! Can live again!

[Future Ninja]

#1. Carson owned 40% of the outstanding stock of a C corporation. During a tax year, the corporation reported $400,000 in taxable income and distributed a total of $70,000 in cash dividends to its shareholders. Carson accurately reported $28,000 in gross income on Carson’s individual tax return. If the corporation had been an S corporation and the distributions to the owners had been proportionate, how much income would Carson have reported on Carson’s individual return?
A. $28,000
B. $132,000
C. $160,000
D. $188,000

answer: C

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

[Future Ninja]

#2. Carson owned 40% of the outstanding stock of a C corporation. During a tax year, the corporation reported $400,000 in taxable income and distributed a total of $70,000 in cash dividends to its shareholders. Carson accurately reported $28,000 in gross income on Carson’s individual tax return. If the corporation had been an S corporation and the distributions to the owners had been proportionate, What is Carson's basis?
A. $28,000
B. $132,000
C. $160,000
D. $188,000

answer: B?

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, please enlighten me on question #2 please. I changed the question what if it's the tax basis being asked? answer usd132,000 is the tax basis right? I know plenty of you here are brilliant in taxation. I'm struggling. I'm confused of computing basis and recognition of Income for S corp. Any tips how to remember and recognize the difference? laymans term pls. thank you.

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

[monikernc]

I need help with different rules for contributions and distributions for each type of entity. Any suggestions are appreciated. I have watched all free Roger and Miles videos on youtube. I do not have a lot of money but do have sone time before exam – what more can I do?

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Future Ninja]

@monikernc – I'd love to share my personal notes/summary. however its a huge file. for distribution of pass through entities, OL share is limited to the owners basis only. beyond that is treated as capital gains/loss. for s corp = loss share is carried forward indefinitely. i'm reviewing s corp now.

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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