[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]

@Future Ninja

how about rent Car and drive it to volunteer destination?
Does the rent car expense deductible for individual?

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

HOPE THIS SCHEDULE WORK, (Reschedule Far Once)

[Kate12345]

have a silly question here. If my c Corp fiscal year end is Apr 30 when do I need to file the tax return.
After 3 months 15 days rule, the answer should be Aug 15 right?

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]

I think it's 15th of July. the third month would be July so 15th of July.

[Credit Revenue]

Pretty sure Corp is 2.5 months

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

[Kate12345]

okay thx Ano,Credit Revenue

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 @Credit Revenue @ Kate12345 – i think for corporation its 15th day of the 3rd month following the end of tax year ( example: calendar year Corp for 2015 – deadline is on March 15, 2016) IRC 6072. 0r 2.5

(a) General rule
In the case of returns under section 6012, 6013, or 6017 (relating to income tax under subtitle A), returns made on the basis of the calendar year shall be filed on or before the 15th day of April following the close of the calendar year and returns made on the basis of a fiscal year shall be filed on or before the 15th day of the fourth month following the close of the fiscal year, except as otherwise provided in the following subsections of this section.

(b) Returns of partnerships and S corporations
Returns of partnerships under section 6031 and returns of S corporations under sections 6012 and 6037 made on the basis of the calendar year shall be filed on or before the 15th day of March following the close of the calendar year, and such returns made on the basis of a fiscal year shall be filed on or before the 15th day of the third month following the close of the fiscal year. Returns required for a taxable year by section 6011(c)(2) (relating to returns of a DISC) shall be filed on or before the fifteenth day of the ninth month following the close of the taxable year.

(c) Returns by certain nonresident alien individuals and foreign corporations
Returns made by nonresident alien individuals (other than those whose wages are subject to withholding under chapter 24) and foreign corporations (other than those having an office or place of business in the United States or a former FSC (as defined in section 922 as in effect before its repeal by the FSC Repeal and Extraterritorial Income Exclusion Act of 2000)) under section 6012 on the basis of a calendar year shall be filed on or before the 15th day of June following the close of the calendar year and such returns made on the basis of a fiscal year shall be filed on or before the 15th day of the 6th month following the close of the fiscal year.

(d) Returns of cooperative associationsIn the case of an income tax return of—
(1) an exempt cooperative association described in section 1381(a)(1), or
(2) an organization described in section 1381(a)(2) which is under an obligation to pay patronage dividends (as defined in section 1388(a)) in an amount equal to at least 50 percent of its net earnings from business done with or for its patrons, or which paid patronage dividends in such an amount out of the net earnings from business done with or for patrons during the most recent taxable year for which it had such net earnings,
a return made on the basis of a calendar year shall be filed on or before the 15th day of September following the close of the calendar year, and a return made on the basis of a fiscal year shall be filed on or before the 15th day of the 9th month following the close of the fiscal year.

(e) Organizations exempt from taxation under section 501(a)
In the case of an income tax return of an organization exempt from taxation under section 501(a) (other than an employees’ trust described in section 401(a)), a return shall be filed on or before the 15th day of the 5th month following the close of the taxable year.

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

[Credit Revenue]

Estate Tax – The credit for $2,117,800 comes into play after the exclusion of $5.43 million? I understand the first $5.43 is not taxed, but I don't understand what happens after that and how the $2,117,800 credit comes into play. Any help is greatly appreciated.

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

[monikernc]

i could be wrong but the way i think it works is the first $5.43m is excluded from the estate and the remainder is taxed at 40% and the unified tax credit is applied up to $2.117 amount. you have to take into consideration any gifts made that had no tax paid on them due to the unified tax credit being applied during the taxpayer's lifetime to know what amounts are available to the estate.

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

[Credit Revenue]

So you get a 2.17 million credit against the 40% that is taxed over the $5.43?

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

[monikernc]

that is how i understand it. you exclude the $5m from the estate, tax the remainder, then apply the unified tax credit up to the $2.117m – futureninja will correct us if we are wrong. i hope.

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

[Credit Revenue]

Thank you!!

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

[Anonymous]

Guys I am pretty sure you don't need to know more than that the first 5mil is not taxed however, I am almost certain that how it works is: had the 5 million been taxed, the tax would be 2.117 million which is equal to the credit amount, it is just one of the many confusing tax laws put into place by the IRS to thieve our money. So anyway the 2.117mil is then applied as a credit, hence negating the tax on the amount up to the 5.43 million number. This is to show for example: that If you had a taxable estate of 6 million number, your whole estate would be taxed at the estate tax percentage and then the 2.117 mil credit would be applied. This would be the same as excluding the first 5.43 million and just taxing the difference at the estate tax rate… Like I said confusing for absolutely no reason just focus on recognizing the estate tax threshold.

ON ANOTHER NOTE:
I am stressing about my knowledge of the deductions and credits. I understand them but I feel its just sooo much too remember… do you guys think a broad understanding while knowing key points (like ago limitations) would be sufficient enough to get what they throw at you.. Rather than knowing every little phase out and threshold amount and how every credit is applied?? Any input is appreciated!

[monikernc]

i just watched video and it says 40% tax on amount > $5.43m – so what i said was wrong. it is how chrisjets worded it above.

i am going to review the released questions to get a sense of how in-depth and detailed the exam questions have been. i think the sims will require more complex 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

[Future Ninja]

@monikernc – when is your test? this qtr?

@Ano – when is your test? this qtr?

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 – tentative estate tax is reduced by gift taxes paid, the ACA (2,117,800) and other credit is the net estate tax. The ACA is base amount offsets the estate tax liablity that would be imposed on tax estate of up to 5.43 million. coming out from the test, i can honestly say, do not focus on this topic, seriously, for real.

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

[Author]

Replies