[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

[Bob from AccountTemps]

Boys, I'm voting for the Fair Tax.

FAR: 82 05/16/2016
AUD: 79 05/24/2016
REG: 07/02/2016
BEC: 07/14/2016

Two for Two, Tie my shoe, Passed both parts, im so smart
Top of the next Pageeeeee

Becker CPA Videos, MC, and Final Review

[mckan514w]

Ha ha ha Just3– seriously the studying is going so slow for me that I might be pushing my sit date back… Good luck and see you soon 🙂

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

[Spartans92]

HAHA I am excited to study for REG since I just finished taking an advanced tax class so the material is somewhat fresh. I am also a fan of BLAW so hopefully this section will be easier/interesting to study for compared to FAR.. I hated that section more than BEC although I agree with Mckan how the topics dont flow well.

Yea @just3, Hope we can liven this forum since it is pretty quiet lol I missed the FAR thread.. The discussion made the material much more bearable.

@Bob, I like your poem hahah. U r indeed smart to come up with that. 🙂

I wish you guys all the best! Be positive :):)

BEC- PASS

[Spartans92]

So studying for REG has me thinking about my taxes for next year. Can anyone help clear things up for me… My parents retired this year and started collecting their social security benefits, however, my mom being a caregiver for my grandma receives income from the state at a total of 6500 annually. Stated in becker the minimum is 4,050 so she's above this limit. I assume I won't be able to claim her as a dependent even though I provide support for her. But I can claim my dad, right?

But then my mom also needs to file (MFJ) since those income are taxable..

PS. I am not trying to minimize my taxes by claiming the exemptions LOL. If anyone can help clear things up that be great. Thanks

BEC- PASS

[Just3Letters]

Spartans,

You're thinking about next year? It's June. You have exactly ten months – 1 day to file your 2016 taxes lol

Anyways, I need a break from studying.

You should be thinking about the CARES mnumonic. I do believe you are correct in that you can't claim your grandmother because she is above AGI limit. However, some state/federal income such as social security is exempt from an AGI limit so you should look that up

However, it would have to be a super unique situation in which you are claiming your parents. As Tim says, “Once they use it, you lose it!”. So, if your parents are filing joint, they get to claim two exemptions (one for each of them) on their joint return. You don't get to claim them because those exemptions have already been taken. It would be super unique if you claimed them because they would not be able to take either of their exemptions. Additionally, they would have to be under YOUR care for more than half of the year (CARES).

I don't know your situation but I highly doubt your parents are your dependents.

Thanks for the study break 🙂

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

[Spartans92]

Haha thanks for the reply @Just3. I guess I am just thinking further because these study materials are relevant (it makes it so much more interesting) plus it helps to solidify the concepts I guess LOL. When u say “super unique” what do you mean exactly? My parents only income is social security with the exception of the caregiver income from the state (I'll take a look at that later on). In other words, they may not have to file a return since it is under the standard deduction limit.. Yea, they will be living with me and I'll be providing care for them (doctors appointment, buying meals etc). I think I will just file a MFJ for them and not worry about claiming them as a dependent lol so its less complicated. Anyways, I appreciate it. At least I tried to make the material more relevant on a personal front. HAHA

BEC- PASS

[Just3Letters]

Spartans,

Just super unique in the fact that most people aren't in the situation that they can claim their parents right out of college. I was actually thinking about how relevant it was when I was going through the tax lectures too! I almost regret (a little bit) going to the audit side of things at work. Audit is fun, but I feel like tax can be so much more beneficial in the long run.

I may be wrong but I think if they file MFJ you can't claim them as an exemption. I think they have to file individually and then you could claim them. Better check though. This stuff is super interesting to me!

I am absolutely not in a position that I can give tax advice though.

Keep up the studying!

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

[mckan514w]

Spartan- If your mom is getting paid as a caregiver from the state- she will need to pay state taxes on this income- which she can then deduct from her federal return- however because of the amount you will not be able to claim her as a dependent. It most probably will be more advantageous for her to file MFJ with your dad and have them claim your grandmother as the dependent. HOWEVER- if you are providing all of the support – medically- you may deduct THEIR medical expenses on your return schedule A (limited to the 10% AGI threshold limit). Just make sure that they don't take medical deductions on theirs- all though I would think if that and SS were the only income they would not itemize.

I am not 100% sure but I think even if they chose to file as MFS you still could not claim your dad as I believe there would need to be a a “corresponding” return for him to go with hers if that makes sense.

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

[jpowell31]

I'm killing off business law by next weekend (aiming for end of July, early August exam). I'm finding so far a lot of the stuff was covered in AUD and BEC…which is good news so far.

Using Ninja only…. anyone else in a similar boat?

[Spartans92]

Ahh.. Thanks Just3 and Mckan! Both were great responses and helpful indeed. I'll save all hassle and file as I have been filing for them in the past. Yes, Just3 I hated Tax while taking it not until I learned about individual taxation and I guess school is different because we all learn differently in terms of speed etc. I am definitely enjoying REG so far and luckily I am going into tax 🙂 I mean who doesn't wanna learn all the tricks to saving a few bucks. LMAO.

Mckan, was very nice of you to stop back in here 🙂 Hope BEC is going well for you.

BEC- PASS

[csvirk]

Easel Co. has elected to reimburse employees for business expenses under a nonaccountable plan. Easel does not require employees to provide proof of expenses and allows employees to keep any amount not spent. Under the plan, Mel, an Easel employee for a full year, gets $400 per month for business automobile expenses. At the end of the year, Mel informs Easel that the only business expense incurred was for business mileage of 12,000 at a rate of 57.5 cents per mile, the IRS standard mileage rate at the time. Mel encloses a check for $480 to refund the overpayment to Easel. What amount should be reported in Mel's gross income for the year?

A.
$0

B.
$480

C.
$4,320

Correct D.
$4,800

Correct is D but Why not C, even tho he returned 480?

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Just3Letters]

csvirk,

I think the key is that the employer does not require reimbursement. Therefore, the entire amount is compensation to the employee which is a deductible business expense for the employer and taxable income to the employee.

I believe if the employer required reimbursement, only the net amount actually used by the employee for business expenses would be in Mel's gross income.

If anybody has anything to add, please let me know 🙂

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

[Just3Letters]

Does anybody have any recommendations about how much time to spend per testlet on Reg?

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

[Anonymous]

@csvirk
In case of accountable plan when an employee maintains the proper accounting and returns the extra money then don't
include the money received in his income nor deduct the expense paid as the business expense.

for nonaccountable plan or if do not reimburse the excess amount to the employer then include the amount received in employee gross income and deduct the expense as Itemized deduction 2% floor.

[Just3Letters]

Thanks for the help Ano!

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

[Author]

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