[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

[Just3Letters]

This is so annoying. The toughest part of tax is convincing myself to forget the matching principle.

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Just3Letters]

Frank and Mary Wood have 2 children. Becky, age 10. Mark, age 14. The woods incurr expenses for after-school care of $4,000 per child. Their only income is from wages. Franks wages are $60,000, and Mary's wages are $2,500. What amount of child and dependent care credit may the woods claim on their joint tax return?

A. 1200
B. 800
C. 500 – Correct
D. 1600

The answer requires me knowing that they are in the 20% tax bracket. Are the tax brackets something I have to know? I figured the question should have just said “They are in the 20% tax bracket”.

Thanks!

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[mtaylo24]

I officially hate Gleim Ch.9. Here are the topics for my non-Gleim users

SU 9: Corporate Tax Special Topics

9.1 – Formation
9.2 – Current Earnings and Profits
9.3 – Distributions
9.4 – Redemptions
9.5 – Complete Liquidation
9.6 – Partial Liquidation
9.7 – Subsidiary Liquidation
9.8 – Reoganizations
9.9 – Procedure

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)

[mckan514w]

actually Just3 I don't think you do need you to know the tax brackets for this question- – the Child Care Tax Credit ranges between 20-35%… if AGI is 15,000 or below you can claim 35% of child care up to 3,000 it is reduced by 1% point for every 2,000 over up to 43,000 where it drops to a flat 20%. The child has to be 13 years of age or younger

So in this question only the 10 year old daughter qualifies. They pay 4,000 however the max is 3,000 and they make more than 43,000 a year so their credit is limited to 20% of the lowest earned income which would be the Moms at 2,500 so 20%*2,500=500

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 I am getting really confused on the difference between the Estate Tax Return (form 706) and the Fiduciary Estate Tax Return (Form 1041)– is it simply that the 706 is the one filed 9 months after the descendent passes and then the 1041 is the one filed during disbursement of the will? Which one claims the personal exemption the 1041? I have downloaded and looked at both forms but am still not real clear…. Thanks!!

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

[mtaylo24]

@mckan514w – I haven't gotten that far yet my book is saying 706 is if taxable estate exceeds $5,430,000 (2015) or $5,450,000 (2016)

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)

[mckan514w]

Ugh @mtaylo24 more limits for me to remember???? I don't know how I am going to keep all of this straight!!!!

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

[Just3Letters]

Mckan, thanks!

Did you memorize all those limits and % for that question? I am in for a hellish 6 weeks 🙁

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[mckan514w]

@just3- YUP! and welcome- its hot and sunny down here 🙂

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

[Tncincy]

what's the normal mcq goal for 22 days before the test

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

[Just3Letters]

Chances we are going to have to calculate the exemption for AMT or it will give us the exemption? The stupid exemption amount already changed from when I studied it in school last winter….

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Claudia408]

tncincy – i'm doing about 120+ a day but this is a retake so i can go a little faster than my first round

Just3 – for AMT i think most of the questions surround preferences and adjustments. for corp AMT i think right now exemption is 40,000.

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Just3Letters]

Thanks Claudia,

I'm guessing tncincy meant what is the average score for mcq sessions but I may be wrong

My reply would be: over 80% average. That's what I aimed for with FAR anyways. I don't know yet how that worked for me!

I think it's a personal preference and time availability thing

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Claudia408]

oh lol. well of course you want to be 80+ but i think average cumulative around 70+ is a good pass indicator. personally don't trust trending score bc those are repeats.

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[mtaylo24]

Help!!!

Mr. Oleaner owns 600 shares of the voting stock of Clarkson Corporation. The remaining 350 shares of the voting stock outstanding are held by persons unrelated to Mr. Oleaner. Mr. Oleaner wants a proposed redemption of part of the stock to qualify under IRC Sec. 302(b)(2). What is the maximum number of shares that Mr. Oleaner can own after the redemption to qualify as a sale or an exchange?

A. 300
B. 349
C. 479
D. None of the answers are correct.

What is 699 and 349 in the explanation below? C Corps are killing me!

Answer (B) is correct.
Sec. 302 determines whether a redemption is considered a distribution equivalent to a dividend or payment for the stock eligible for capital gain or loss treatment. Under Sec. 302(b)(2), a substantially disproportionate redemption qualifies for capital gain or loss treatment. For a redemption to be substantially disproportionate, the shareholder must own less than 50% of all outstanding voting stock immediately after the redemption, and his or her total percentage of ownership must be less than 80% of his or her ownership percentage immediately before the redemption. Mr. Oleaner holds approximately 63% (600 ÷ 950 shares) of the stock before the transfer and, if he holds 349 shares, he meets the 50%-ownership rule (349 ÷ 699 = 49.9%). The second requirement is also met because ownership after the redemption is less than 80% of the percentage ownership immediately before the redemption (80% × 63% = 50.4%; 49.9% < 50.4%). Thus, the redemption is substantially disproportionate and is considered a sale.

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)

[Author]

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