[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

[monikernc]

futureninja – thank you and good luck with results. enjoy having it behind you as you wait.

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

[Anonymous]

@ future ninja ,
my test is on 27th of May
How was your test?

[Future Ninja]

@Ano – Best of luck to all of us. SIMS were worst than I ever had. If I fail again, its because of the SIMS. Didn't prepare for a particular topic. I couldn't tell topic as much as I want to because of exam disclosure. So curious coming score release. TIPS: study SIMS as many as possible and use AL during actual exam. secure 1 hour and 30 minutes for the SIMS. I got one research question. Took me 30 minutes to find the correct one. I don't know somebody who got the research question in 2 minutes.

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

[Anonymous]

@Future, we're rooting for you. You knew the materials so well, I am sure you already passed!

At the last minute before I sat in Q1 window, I figured out how to find AL in almost less than two minutes. AL research task saved my butt so I passed by the skin of my teeth. I shared the tips in the Q1 REG Study Group. Did you not read my post?

[Anonymous]

@ future ninja
Do you have anything related to partnership at risk basis?

[SaveBandit]

Question:

In the year of a decedent's death, he would still have to file both the usual 1041 and then the 706, right?

4 for 4

FAR 85
AUD 94
BEC 86
REG 90

[monikernc]

from the irs form 1041 instructions: For fiscal year estates and trusts, file Form 1041 by the 15th day of the 4th month following the close of the tax year.
For calendar year estates and trusts, file Form 1041 and Schedule(s) K-1 on or before April 18, 2016. or April 15, in years the holiday or weekends do not extend the date.

from the irs form 706 instructions: You must file Form 706 to report estate and/or GST tax within 9 months after the date of the decedent's death. If you are unable to file Form 706 by the due date, you may receive an extension of time to file.

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

[monikernc]

here is AmorD helpful post for using the AL:

https://www.another71.com/cpa-exam-forum/topic/reg-study-group-q1-2016/page/24

thank you, AmorD. all others, use this wisely. it is about mid-page

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

[SaveBandit]

n 2015, Wein Corporation had a net loss from operations of $50,000, which included a deduction for charitable contributions of $2,000. In addition, Wein received dividend income of $10,000 from a 15%-owned domestic corporation. What is the amount of Wein's net operating loss for 2015?

A 45,000
B 49,000
C 55,000
D 59,000

Answer A

Loss from ops (50,000)
Dividends 10,000
Total loss (40,000)

Add back charity 2,000

Loss before DRD (38,000)
Less: DRD (7,000)
NOL (45,000)

I get the math, but why doesn't the exception kick in here? I figured since we were already sitting at a loss we would take 70% of the Taxable Income before DRD – in this casse – (38k) and calculate the DRD off that. I guess if your taxable income is already negative, the exception doesn't count?

4 for 4

FAR 85
AUD 94
BEC 86
REG 90

[Anonymous]

@SaveBandit You are exactly right! If at any time you can subtract your DRD and it causes you to have an NOL then as a rule you use the full DRD.

Although, i need clarification… why would you add back the charity? are you not allowed to take it when you have an NOL?

These stupid minuscule details are driving me nuts with this test, read my last post (https://www.another71.com/cpa-exam-forum/topic/help-studying-for-reg) if you want to know what I am dealing with lol.

[Anonymous]

@ savebandit and @ chrisjets
I think that charitable contribution is added back because charitable contribution deduction is allowed up to 10% of taxable income before the contribution and dividend received deduction ——–.
Here we have the loss from an operation so all of the charitable contributions will be carried forward for 5 years.

[Future Ninja]

@Ano – unlike last time, I had at-risk SIM. This time around, there is nothing about it. send me more questions. I'd like to help in any way I can.

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 – Thank you. Please let me know what is the best answer for the question shown below?

Partner X received cash distribution of usd20,000 and Land with AB of usd 30,000, FMV of usd10,000. Partner X has AB of usd10,000. What is the taxable amount of the Land, if any?

a. 0
b. 10,000
c. 20,000
d. 30,000

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

[SaveBandit]

Two unrelated individuals, John and Tom, own all the stock of Regal Corporation, which has earnings and profits of $400,000. Because of the inactivity of the business for the last several years, Tom has decided to retire from the business and move to Alaska. Accordingly, Regal Corporation will redeem all the stock owned by Tom and, in return, Tom will receive a distribution of $500,000. Tom's adjusted basis in the stock is $250,000. What will be the tax effect to Tom?

A. $400,000 dividend

B. $500,000 dividend

C. $100,000 capital gain

D. $250,000 capital gain

Answer D

Ok, so why isn't the gain limited to E&P here? Company pays a 500k dividend but only has 400k in E&P. I would've thought the gain was 150k. Every time I think I've turned a corner with C Corp basis/distributions I realize I don't get it at all.

4 for 4

FAR 85
AUD 94
BEC 86
REG 90

[Anonymous]

@ Future Ninja
Partner X received the cash distribution of usd20,000 and Land with AB of usd 30,000, FMV of usd10,000. Partner X has AB of usd10,000. What is the taxable amount of the Land, if any?

In non-liquidating distribution
the gain will recognize if cash received is greater than basis so the gain is 20000-10000- 10000
but no gain or loss will recognize upon the distribution of property .
Here question is asking ( What is the taxable amount of the Land, if any?)
So the answer will be 0 for land , no taxable amount for land.

[Author]

Replies