[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]

Question regarding education credits- I have noted that there are phaseouts (OF COURSE) for the American Opportunity Credit (160 MFJ/ 80 single) but I do not have any phaseouts mentioned for lifetime learning credit? Is there one? Same as AOC?? any help greatly appreciated

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]

@mckan514w
there is phase out in lifetime learning
single $52,000
MFJ$104000

[mckan514w]

well CRAP 🙂 ha ha ha thanks Ano!!!!

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]

(and of course it couldn't be the same as the american opportunity phaseouts now could it??)

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]

I am not learning any phase out this is what my review course suggest me.
and they just suggest to know which one is refundable and non-refundable.

[mckan514w]

yeah well I listened to my review course on what not to learn in FAR and well we can all see my score from that…. taking no chances!

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

[ahugemistake]

Anyone else retaking this exam?

I feel like I wasted so much time on this 1250, 1245, 1231 stuff last time with wiley and becker barely covers it? How much does ninja touch on this?

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[CPA2BEE]

When partners of a partnership or shareholders of a corporation transfer property with an associated liability that is assumed by the entity with the transfer, is the following correct?:

– Partnership – deduct total liability from adjusted basis and add back partner's % of liability to determine partner's basis in the property.

– C Corp – deduct total liability from adjusted basis ONLY, no add back of shareholder %

Basically my question is does the % of liability only get added back in partnerships and not corporations?

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Anonymous]

@CPA2BEE
you are right for partnership but for the corporation, you also have to see whether the liability assumed by the corporation is greater than the adjusted basis of property or not if yes then you have to add gain recognized with the adjusted basis and deduct the boot received.
the assumption of liability by a corporation is considered as boot received by the shareholder

[Claudia408]

What is trust income versus trust principal? Can you provide examples?

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

[Junjun]

Hi,

I have a question regarding REG simulations.

When filling in numbers in individual tax returns, I do not know some numbers either go with wage or other income.

For example, group term life insurance premium income (over 50K) is included in Wages, salaries, tips, etc, not other income. (#5 in simulation) For the other simulation, unemployment compensation is included in Other income, but not in Wages, salaries, tips, etc. (#24 in simulation) To me, the group life insurance premium should be in other income not a part of Wages.

Could you tell me how I should understand this classification? Thank you in advance.

unemployment compensation

[CPA2BEE]

@Ano – Thanks for the response. So for corps when the liability exceeds the basis of the transferred property is it the corporation or the shareholder who recognizes the gain?

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Anonymous]

@CPA2BEE
shareholder
corporation never realize gain or loss upon issue of stock or debt certificates
corporation can only recognize gain or loss in complete liquidation

[mckan514w]

@Claudia- Trust interest is just that the interest that is earned on investments within the trust or the interest earned on the money that is parked there and the principal / corpus is the investment / property / cash that is deposited there. So lets say I establish a trust for you and I put into it $200 and the deed to a rental property. That becomes the Corpus / principal. The 200 is invested into a bond that pays 12% interest so that interest would be interest income and the proceeds from the rental property would be interest income— Now I could also stipulate that 1/2 of the proceeds of the bond and 1/2 of the rental income be plowed back into principal – thus enlarging the principal enabling the trustee to further invest the money etc…

think of trust income vs. corpus kind of like a bond where the Corpus is the face amount that is held to maturity and the income is the interest payed out. or a savings account that earns interest–

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

[CPA2BEE]

@Ano you are a legend, that helps so much. Thank you!

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Author]

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