[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]

Spartans,

I agree with Claudia that the self-employment tax is 15.3%. You can always deduct 50% of self-employment taxes at a deduction to get to AGI.

The IRS explains it pretty well on this website. Go to “Self-Employment Tax Rate” Paragraph. I've found the IRS explains stuff very simply for a giant government organization!

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

Hope this helps!

Also, if there is any glass-half full from REG being so stupid difficult it is that all three of us are studying together again haha

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

[Spartans92]

HAAHHA Just3 you just made my day!! I love studying with you guys. 🙂 Thanks for the link. I'll definitely check that out. Good luck with REG in a few weeks.

BEC- PASS

[Just3Letters]

You guys make the studying so much easier when I get on A71 and see some funny comment or just a happy face! Congrats on BEC by the way!

Side Note: for the CARES and SUPORT stuff for qualifying exemptions, they each have a gross income test. I know the limit is somewhere around $4000 but I figure it's good to know the exact limit. I've had a few questions on it. Does anybody know the actual number?

Thanks!

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

[Spartans92]

Thanks Just3! I believe the exact number is 4,000 indeed.

BEC- PASS

[Just3Letters]

Found it. $4,050 for 2016

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

[Claudia408]

The FAR 3 back again! OMG, you guys are cool and all but F*** I wish I passed this time around and go back to FAR! I hate this exam so much.

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

[Just3Letters]

Haha I hate it too Claudia. I just got 55% on second Becker final exam this morning *embarrassed*

Also, @Spartans, I know your question was already answered but I am re-writing my notes and found verbatim the answer to your question in Becker text. Page R1-29 states “The actual SE tax is calculated on 92.35% of self-employment income”

Ok, I'll shut up about it now lol

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

[Claudia408]

Which of the following conditions, if present on an otherwise negotiable instrument, would affect the instrument's negotiability?

A.The instrument is payable six months after the death of the maker.
B.The instrument is payable at a definite time subject to an accelerated clause in the event of a default.
C.The instrument is postdated.
D. The instrument contains a promise to provide additional collateral if there is a decrease in value of the existing collateral.

The answer is A and I understand that one's time of death is not known, but doesn't D also contain a conditional event that doesn't meet the requirements for negotiability?

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

[Grey Worm]

I have 30 days to study for REG. I would love some critique on my plan. It's important to note that I have spent roughly 0 hours on this section but I have a feeling that I am weakest in this area compared to the other 3. But here is my general plan for the next 30 days:

Days 1-5: Read the tax chapters. Watch the Tax review videos. Do MCQs sparingly
Days 6-10: Read final review notes for B-law chapters, then final review vids. While mixing in Tax MCQs
Days 11-15: Heavy MCQs and SIMS, all chapters but weighted in favor of tax
Days 16-20: Final review notes for all chapters.
Days 21-25: Heavy MCQs
Days 26-30: Heavy MCQs, and review my bookmarked SIMS
Test Day: review handwritten notes and the mnemonics I plan to write down at the beginning of the exam.

I could always push my exam back a few weeks, but in my limited experience I start forgetting things if it's been more than a month. I'll play it by feel in 3 weeks.

✓ BEC: 77 (4/2015)
✓ AUD: 87 (4/2016), [85] [67]
✓ FAR: 79 (6/2016), [74] [74]
_ REG: __ (7/2016)

[Spartans92]

LMAO thanks Just3!! I figure my book is the V1.2 so its kinda out dated.. I gotta download the updated notes from Becker's site rather than paying an extra 30 bucks for the new book.

BEC- PASS

[Just3Letters]

Claudia, “D” is not correct because only conditional events that affect the original promised consideration affect negotiability. D is talking about “additional collateral” which would be an additional item *besides* the negotiable note.

I understand the confusion there though! Negotiability can be super confusing

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

[jad11]

In corporate formation, Token contributed 10,000 cash, property worth 40,000(5000 basis), with a related assumed recourse liability of 20,000. The answer says that the corporation basis would be 10,000 (5000 asset carryover basis + 5000 gain recognized).

In the Becker book, (page 5), I am seeing an example that shows corporation basis in an asset would be the greater of shareholder asset basis or liability assumed. Shouldn't the corporation basis for the info above be 20,000 since the liability assumed is greater than the shareholder asset basis? What am I missing? Thanks.

[The.Underdog]

Bought to Jump into REG.
How boring is the material? I dont know if I can read 500+ pages about tax.

FAR - 86
AUD - 93
REG - 8/31/16
BEC -84

[csvirk]

Welcome Underdog. Once you understand all the deductions, Phaseout and credits you will be fine. I did not read the material and jumped to MCQ, It helped me understand the material better. I refer to books for my weaker sections . Good Luck.

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

[csvirk]

Pine, an employee of Global Messenger Co., was hired to deliver highly secret corporate documents for Global's clients throughout the world. Unknown to Global, Pine carried a concealed pistol. While Pine was making a delivery, he suspected an attempt was being made to steal the package, drew his gun and shot Kent, an innocent passerby. Kent will not recover damages from Global if:

A.
Global discovered that Pine carried a weapon and did nothing about it.

B.
Global instructed its messengers not to carry weapons.

C.
Pine was correct and an attempt was being made to steal the package.

Correct D.
Pine's weapon was unlicensed and illegal.

Why D is the best answer among the given choices?

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

[Author]

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