[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

[mckan514w]

Because Union is the Seller this is a FOB Shipping contract… (or FOB Seller) — thus Unions liability ends when it delivers the goods to the common carrier to deliver it to Quick– making it Qucks Liability from the time it arrives at the carrier…

D is wrong because you are not exactly sure when the title passed… remember title passes once the goods are identified directly in the contract. Because you have been provided with the shipping information you can determine when Risk passed

Hope this helps!!!

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Anonymous]

During 2015, Lee Smith had $100,000 of mortgage debt canceled because he was insolvent. Immediately prior to the debt cancellation, Smith's adjusted basis in his home was $150,000. As a result of the cancellation, Lee Smith will recognize income of:

Incorrect A.
$0.

B.
$50,000.

C.
$100,000.

D.
$150,000.

You answered A. The correct answer is C.

Discharge of debt due to debtor insolvency is generally not included in gross income. Instead, the adjusted basis of assets is reduced by the amount of debt forgiven. In this case, Lee Smith's adjusted basis of his home will become $50,000 ($150,000 − $100,000). However, for 2015, the mortgage debt forgiveness has expired. Therefore, Lee will recognize $100,000 as income. Since Lee is not filing bankruptcy and the debt forgiveness has expired, he must claim the full amount of mortgage debt canceled unless this tax provision is extended.

Can anyone verify that whether the discharge of indebtedness on a principal residence is still in effect or not?

[mckan514w]

Yes- I believe it was extended for 2016…

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Anonymous]

so the discharge of indebtedness of principal residence up to $ 2,000,000 won't be added to the gross income.

[mckan514w]

Correct- at least as I understand it… anyone else???

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[mckan514w]

Okay a 1244 Stock Loss- I understand can go to off-set ordinary income up to $100,000 with the remainder treated as a capital loss- does this mean in theory that your maximum off-set for the year could be the 100,000 ordinary income offset and then an additional 3,000 of capital loss?

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[blithesherry]

@Ano and @ABTX411, thank you so much for your clear and helpful explanation. You guys are AWSOME !!! I did Not see the rule for question 13. @Ano, what CPA review material are you using?

Thank you both again !!!

[Future Ninja]

@tncincy – thank you!

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

[Anonymous]

@mckan514w
let say you have sec1244 loss of $142,000 so out of 142000, you can deduct $100,000 from ordinary income in current year and rest $42,000 capital loss can be deducted in the future year against ordinary income up to $3000 per year. but in current year you can only deduct $100,000.

[Anonymous]

I am using Yaeger which uses the Wiley book and I also have NINJA notes,flash cards and mcqs.

[Future Ninja]

@Ano – how's your study? I failed REG again man. Got 70 this time, dropped 4 points from 74. Kill REG for me please?! lol

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
sorry about the 70, last time why you took the test so early? it is your last section take your time when you feel ready then take the exam.
First time I failed because I didn't cover the business law ( just looked into the few modules ) and Individual taxation was my week area, however, my report showed that I was comparable in individual and weak in entities taxation,
Anyway, so, this time, I am putting time in my weak areas along with the other module.
I read professional ethics two times but when did the AICPA released question. I chose the wrong answer,
I don't know why they frame the question weirdly.

[Future Ninja]

@Ano – I needed to take the shot because my AUD expired April 30th. I took REG 6th times already. Its my 7th stab coming July, 2 months from now. Please answer my question, kill REG for me and bury him when you face this beast? lol

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

[Anonymous]

I wanted to know that the 12-month rule for Cash basis taxpayer applied to any expense or for some particular expense
like if A an individual cash basis taxpayer-paid rent/royalty/interest/etc on 2015 for 1st Feb 2016 to 31st Jan 2017
here benefit extends beyond the next taxable year so taxpayer needs to allocate the expense in the year 2016 and 2017
but if the expense is for Jan 2016 to dec 2016 then entire expense would be deducted in the year2015 when paid.

[Tncincy]

Future Ninja, Do you have ninja mcq's? I found that if I look for the answers in the book before I choose the answer I can better retain the information. Maybe print out some questions if you have a way to print then find the answers or calculation in the book. I failed reg 2x so this is what I am doing different. Then I go and do nmcq's without looking. Doing much better. I am also working the sims to make sure I know what I am doing, also using the book. ( have ninja book and wiley book) taking reg again 6/10 don't plan to fail again…..

Back to studying….let's go

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

[Author]

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