[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

[Kate12345]

Confusing to gift tax.

Question: Blake transferred a Corp bond basis and FMV= 20,000 16 year old child . Annual bond interest 2,000, which to be accumulate in trust and distributed to child on age 21. Present value of interest to be received by child is 8,710 the amount gift exclude from gift tax is

A 0
B 8,710
C 20,000
D 13,000

A is correct.

I thought bond securities should be calculated when kid received the bond value. Maybe I just don't understand the question. Anyone help?

FAR - 02/25/2016 - 75
REG - 04/21/2016 -
AUD - 06/10/2016 -
BEC - 07/10/2016 -

HOPE THIS SCHEDULE WORK, (Reschedule Far Once)

[Anonymous]

@Kate12345
gift exclusion of $14000 can only be used if the gift is for present interest here the bond interest is accumulated and distribute to the child at age of 21.
so the exclusion is 0.

[monikernc]

Ano – i have not encountered many questions about volunteer tax preparers. Ninja had a few in ethics section. Are you seeing more than if unpaid volunteer you do not sign the return?
IRS Link and Learn site for VITA volunteers may have some additional info.

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

[Kate12345]

@Ano. Thank you.

Yes I figure out its not current gift tax. Bu I am thinking t how it will be taxed in the future when the kid is 21 years ago ? As gift tax at 21 years old?

FAR - 02/25/2016 - 75
REG - 04/21/2016 -
AUD - 06/10/2016 -
BEC - 07/10/2016 -

HOPE THIS SCHEDULE WORK, (Reschedule Far Once)

[Future Ninja]

@Ano – for volunteer tax return preparer for your friends and family is not subject to the rule, i think. Tax return preparer is applied only if given a fee. employees, free advise, free completion of tax refund claim are not subject to being a tax return preparer. i remember there was one question about this from previous encounter. why did you ask? how's your REG by the way? any tips?

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

[Anonymous]

Me too had a couple of them and had no idea about that, my study course didn't even mention about this .
right now I am in b law portion ,
This time, I really wanted to familiar with the authoritative literature so that I am able to use it on exam day last time I wasn't even able to find the research question.
same suggestion I also want to give you that be familiar with the tax code so that we can use it for the sim.

[Kate12345]

i think one diff for vita (volunteer program) is when the tax preparer Mail their tax returns, the signature is only required themselves on return page. Does it mean volunteer not need to take responsibility for that?

We can check the form 1040. The signature of the 1 page requires ” paid prepare use only” , which only double match the tax return preparer definition I think. So can we say paid preparer has the responsibility?

FAR - 02/25/2016 - 75
REG - 04/21/2016 -
AUD - 06/10/2016 -
BEC - 07/10/2016 -

HOPE THIS SCHEDULE WORK, (Reschedule Far Once)

[mpd92]

Just took REG for the 4th time..I'm worried becasue the third testlet was extremely easy. The first was hard, the second was brutal, and the third was so easy i finished it in 10 minutes. How bad of a sign is that? Has anyone passed that had such an easy 3rd testlet? i also thought the sims were very challenging but probably snagged a few points here or there

[Kate12345]

haven't try reg yet. But my far exam is median hard easy and I had 2 researches at that time. So I think maybe the Order of the hard or easy doesn't matter.

New question here. I faced in Becker question. But I forget the result.

Contribution service to charity is not a deductible. How about the expense happens in volunteer service?

FAR - 02/25/2016 - 75
REG - 04/21/2016 -
AUD - 06/10/2016 -
BEC - 07/10/2016 -

HOPE THIS SCHEDULE WORK, (Reschedule Far Once)

[Future Ninja]

@Kate12345 – unreimbursed volunteer expenses to charity are deductible.

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

[Future Ninja]

are these correct? please shed some light. thanks.

Individual charitable contribution – carried forward 5 years.
Corporation charitable contribution – carried back 3 yrs, carryforward 5 years.
Net Operating Loss (SP and Corp) – 220 volts – carried back 2, carryforward 20 years.
PAL (SP and Corp) – carry forward indefinitely
Capital Loss – carried back 3 yrs, carryforward 5 years. limit of usd3,000

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

[Future Ninja]

@mpd92 – sitting REG tom 8am. anyone who wouldn't mind sharing tips and reminder? i appreciate it.

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

[Anonymous]

Carry Back/Carry Forward Rules:
Indefinitely – 6 [SPACES]
S – S Corporation =>Any losses disallowed may be carried forward indefinitely and will be deductible as the shareholder’s basis is increased.
P – Passive Activity Loss [PAL] => In excess of passive activity income, forward indefinitely
A – Alternative Minimum Tax [AMT] => Forward indefinitely against future “regular” income tax; At-Risk Amount [ARA] ==> Any losses in excess of the at-risk amount are suspended and carried forward without expiration and are deductible against income in future years from that activity. The at-risk amount is also referred to as basis. Note that although we discuss this in the textbook for partnerships, the concept applies to all activities that have flow through income and losses.
C – Capital Loss => Individual only, NOT applicable to corporations => After $3,000 against ordinary income and $50,000 against capital gains, forward indefinitely (ST or LT)
E – Excess investment expense over income => Forward indefinitely; Excess of any losses from at-risk amount
S – Section 179 Deductions => Amount expensed cannot exceed the TP’s aggregate taxable income from trade or business activities, excess that’s disallowed is carried forward indefinitely.

0/5-Charitable Contributions (OVER 10% AGI Limit) –Forward 5 years
1/10-Carryover of Excess (Disallowed foreign tax credit)
1/20-(a) General Business Credit => Unused Credit Carryover; (b) Small Business Health Care Tax Credit
2/20-Corporations NOL
3/5-(a) Corporate Capital Loss; (b) Net LT Capital Loss

[Future Ninja]

@Amor D – thank you very much.

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

[Future Ninja]

@Amor D – how's BEC? dont forget COSO and IT.

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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