[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

[Bear-Bear]

I think I'm about done with Ninja. 94% through adaptive learning, and all I have left are around 100 Bizlaw questions. I'm obviously not going to crack 70% on that damn topic. Pretty sure at this point I'll benefit more from doing a few sets of random MCQs for the next three days just to keep fresh, and re-read a few trouble sections in Wiley.

[Just3Letters]

Beat-Bear, I thought you were testing on same day as me?

Note: I'm absolutely exhausted from studying as well. Driving me crazy. I have 596 not seen but only 168 are tax.

My averages:

Ethics- 83%
Blaw- 72%
Fed Tax process- 81%
Fed property tax- 82%
Individual tax- 76%
Fed tax of entities- 79%

I'm just so burnt out but all my scores are right on the pass/fail mark. I don't know how to improve anymore. I always score the same. This happened before FAR as well.

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

[Bear-Bear]

Just3Letters: I am, but I'm not studying on Friday. At all. Haha.

I'm totally jelly of your averages. Mine aren't too stellar. I really struggled most of the way through REG…it wasn't until I was probably halfway through adaptive learning that it all started to click. Hence the low averages. The trending, naturally, is probably a good 10-15 points too high on most of these I think (except bizlaw). I do wish the trending score would be more realistic in the later stages of adaptive learning and not go up drastically just because I answer 60% on a set of previously missed questions. I'm certainly not going to get a 93 on this exam.

Ethics- 85% AVG, 100% Trending
Blaw- 69% AVG, 67% Trending
Fed Tax process- 77% AVG, 99% Trending
Fed property tax- 75% AVG, 97% Trending
Individual tax- 70% AVG, 100% Trending
Fed tax of entities- 71%, 96% Trending

[Claudia408]

ok hotshots averaging above 70 (which i'm jealous of too!), help a struggling girl out please!

I'm not understanding the explanation for this. I had 2 problems just the same as this and I'm don't get the rules here.

Evon Corporation, which was formed in 2011, had $50,000 of net Sec. 1231 gain for its 2014 calendar year. Its net Sec. 1231 gains and losses for its three preceding tax years were as follows:
Year Section 1231
results
2011 Gain of $10,000
2012 Loss of $15,000
2013 Loss of $20,000
As a result, Evon Corporation's 2014 net Sec. 1231 gain would be characterized as

Answer: A net long-term capital gain of $15,000 and ordinary income of $35,000.

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

[Claudia408]

ok hotshots averaging above 70 (which i'm jealous of too!), help a struggling girl out please!

I'm not understanding the explanation for this. I had 2 problems just the same as this and I'm don't get the rules here.

Evon Corporation, which was formed in 2011, had $50,000 of net Sec. 1231 gain for its 2014 calendar year. Its net Sec. 1231 gains and losses for its three preceding tax years were as follows:
Year Section 1231
results
2011 Gain of $10,000
2012 Loss of $15,000
2013 Loss of $20,000
As a result, Evon Corporation's 2014 net Sec. 1231 gain would be characterized as

Answer: A net long-term capital gain of $15,000 and ordinary income of $35,000.

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

[Bear-Bear]

^^^Whoa…yeah, I had to look that one up. Per the IRS website:

“Treatment as ordinary or capital. To determine the treatment of section 1231 gains and losses, combine all your section 1231 gains and losses for the year.
If you have a net section 1231 loss, it is ordinary loss.

If you have a net section 1231 gain, it is ordinary income up to the amount of your nonrecaptured section 1231 losses from previous years. The rest, if any, is long-term capital gain”

Actually, wait…even that explanation doesn't make sense for this problem. Yeah, I'm confused and I never came across this in either Wiley or Ninja.

OK, i get it now. Nevermind. Dear God, my brain is mush.

[Just3Letters]

Claudia,

where are you getting these questions?! 1231 gains are LTCG and 1231 losses are ordinary. We all know that but I have no idea what to do with this problem. There has to be some kind of limit to make the 15,000 of LTCG come out as correct but I googled the IRC and found nothing of the sort.

Somebody help!! Now this is annoying me

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

[Bear-Bear]

Just3Letters: I think the rule is, when there are nonrecaptured losses in previous years, any 1231 gain in the current year must be considered ordinary to the extent of the losses.

[Just3Letters]

OHhhhh. I've never heard of that rule lol. So it's like applying 1245 but for prior years. Thanks!

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

[Claudia408]

ok i see, thanks…makes sense after reading it about 4x.

so do you guys look up all the stuff in the IRS website to help with explanations? I feel like that website is kinda big, lol.

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

[Claudia408]

I have Wiley and they have supplemental questions in the MCQs

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

[Bear-Bear]

Claudia, I google first, and if the answer is indeed in the IRS page…just do a CTRL+F and search the IRS page for whatever key words you are looking for. 🙂

[Claudia408]

Omg didn't even know where to start with this one!

Thayer Corporation purchased an apartment building on January 1, 2011, for $200,000. The building was depreciated using the straight-line method. On December 31, 2014, the building was sold for $220,000, when the asset balance net of accumulated depreciation was $170,000. On its 2014 tax return, Thayer should report?? TRY AND ANSWER!! Muahahahaha!!!

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

[Bear-Bear]

I'm guessing it's not $50k long term capital gain? 🙁

[Claudia408]

sorry Bear – whammy.

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

[Author]

Replies