[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]

Wow this is a messed up way of explaining this question! The 699 is the number of share outstanding after the redemption… so if Mr. Oleaner owns 600 and then drops down to 349 the company has redeemed 251 shares meaning that there are now 699 share outstanding (950-251).

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]

I actually came at this from an “elimination” standpoint- so if he currently owns 63% of the stock right now- to meet the 80% test he would have to own less than 50.4% after the redemption (.63*.80)= which we then know has to be dropped to 49.99% in order to meet the 50% test. so .4999*950 currently outstanding= 474 shares which eliminates answer C…because 474 is less than 479 meaning 479 would not pass the 80% test…. we then know anything under 474 is going to meet the 80% test. The question is asking for the MAXIMUM number so then you go with answer B which is the highest answer after 479 and do the check- 349/(950-(600-349))=49.99% which would then be the max because anything over that would be 50%

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]

Thanks again

OK, so you eliminate the answer choices from the 600 he owns?

a.) 600-300 = 300 shares redeemed. 950-300 = 650 = 300/650 = 46.15%
b.) 600-349 = 251 shares redeemed. 950-251 = 699 = 349/699 = 49.99%
c.) 600-479 = 121 shares redeemed. 950-121 = 829 = 649/829 = 78.29%

C is eliminated because it is over 50%, A is eliminated because B is the closest to 50%

This one seriously ruined my night. On to S-corps!

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]

@mtaylo24– yes! you got it- like I said really messed up way Gliem had / has of explaining the concept…

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

[user2701]

Friends..I am new to NINJA..

Can you please tell whats the difference between NINJA notes & NINJA books ? Notes..is it flashcard types ? And books means study modules ?

Have Wiley study guide & WQB. Which other study material should i supplement myself with for REG ?

REG masters…. need your guidance !

By the way..fyi..I am planning to take REG after BEC( being my first exam) i thought of AUD first. But reading expert reviews, thought to move on with Tax first.

BEC- 43(Feb'16), Retake-June 10, (Wiley text book/WQB/NINJA MCQ)
REG- TBD
FAR- TBD
AUD- TBD

[Claudia408]

can someone explain what the unallowed loss carryover of 7000 is in 2015?

Mutt and Jeff each have a 50% interest in Keni Partnership. The partnership and the individuals file on a calendar-year basis. For its 2014 tax year, Keni had a $30,000 loss. Mutt's adjusted basis in the partnership interest on January 1, 2014, was $8,000. In 2015, Keni partnership had a profit of $28,000. Assuming that there were no other adjustments to Mutt's basis in the partnership in 2014 and 2015, what amount of partnership income (loss) would Mutt show on his 2014 and 2015 individual income tax returns?

Answer:
2014: (15000)+8000-7000=(8000)
2015: 14000-7000=7000

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

[Just3Letters]

User2701,

I'm confused. Do you only have the wiley text book and wtb? Some people don't like the lectures but I find them immensely helpful. Unless you are very comfortable with each section of the exam, I would recommend getting a full test prep. WTB is great and they are definitely the leaders with respect to teaching the new DRS simulations but it's more for practice than learning.

Up to you but a full test prep is my recommendation!

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

[user2701]

I have only WQB & study guides.

Which other do you recommend?

BEC- 43(Feb'16), Retake-June 10, (Wiley text book/WQB/NINJA MCQ)
REG- TBD
FAR- TBD
AUD- TBD

[Just3Letters]

I like the Becker lectures and lots of people like the Roger lectures. However, I can't really recommend them because my firm pays most of the cost. Otherwise I would have gotten a cheaper package.

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

[mckan514w]

@just3 where are you getting your numbers from? A partner can only deduct a loss down to his basis never below so year 2014 he will have an 8,000 loss which is equal to his basis and a 7,000 carryover loss (15,000 -8,000) his basis as of Jan 2015 will be 0— 2015 he will have a 7,000 gain which is his portion of the gain less the 7000 carryover loss from 2014

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]

I'm confused as to what are they itemized deductions subject to the 2% AGI test

The Becker text just says un-reimbursed business expenses other than moving expenses. Is that really all you need to know?

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

[Just3Letters]

Mckan I think you mean to be talking to Claudia 🙂

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

[mtaylo24]

2% Itemized Deductions (Gleim)

Hobby Expenses
Unreimbursed employee expenses
Tax Preparation Fees
Investment Expenses

Harry Uses Tax Information

Unreimbursed employee expenses

Home Office Expenses
Union Dues
Professional Dues and memberships
Uniforms
Job Seeking Expenses
Entertainment Expenses
Transportation Expenses
Subscriptions to business journals
Travel expenses
Outside salesperson expenses
Education Expenses

Harry Usually Prefers Using Journal Entries To Show Total Operating Expenses

Oh Roger CPA says BIT for their 2%

Business expenses of an Employee (AICPA, MIleage, Union Dues, Uniforms, CPA, Laptop, Business use of Home)
Investment Expenses (Safety Deposit Box)
Tax preparation and Attorney Fees

BIT

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)

[Just3Letters]

Thanks Mtaylo24!

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

[mckan514w]

Lol Just3- its been a looooong day can you tell!!! 🙂 and longer weekend i'm afraid… T-7 – 🙂

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

[Author]

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