[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

[CPA2BEE]

Haha true ^^^…the way I see it, I've been going at this journey for almost a year and a half now. I'm gonna take the test, knowing that no matter what happens I can't take it again until October anyway, and I'm gonna have myself one hell of a summer pass or fail. That will be a long month though…

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

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

[Anonymous]

i'm a little lost on the contributions question. doesn't he need to own 80%+ to have control and defer the gain?

[Bear-Bear]

Not if the other person/persons who are contributing at the same time add up to 80% or more.

[CPA2BEE]

@Dr Cash

– For C Corps, the transaction must control 80%+ of the interest in order to defer the gain

– For Partnerships, the 80%+ rule does not apply. Gains are deferred unless liability exceeds basis of contributed property or services are rendered for partnership interest

So for C Corps, yes. For Partnerships, no.

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

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

[Anonymous]

ah! got it

[Just3Letters]

So the answer was: D, $0… correct?

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

[Spartans92]

I hate the REG SIMS as much as I Hate FAR! just needs vent.. sorry

BEC- PASS

[Bear-Bear]

I did all the SIMS in Wiley, and exactly 1 of them in Ninja. Yeah…they suck.

[CPA2BEE]

@Just3 yes, but say it had been for 50% interest, the shareholder would've recognized a gain.

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

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

[Just3Letters]

Yeah that's what I thought. Thanks!

I'm convinced that you can't actually prepare for the Sims so I tried all the R1-R4 sims and that's pretty much it. I did pretty bad on most of them.

I'm just going to keep doing MCQ this week and hopefully that gets me 75% prepared!

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

[Anonymous]

and beck would be able to defer the gain as well because they are a part of the controlled group?

[jad11]

I have a few questions on Section 179 deduction.

1. Can we take Sec 179 AND depreciation expense in the same year?

Becker identifies sec 179 as “Expense in Lieu of Depreciation.” I thought in lieu meant that you take this expense INSTEAD of depreciation, yet I just worked some becker sims where section 179 was elected, but it was also considered when calculating the depreciation basis —>purchase price-section 179= depreciation base

2.How do we elect what amount we would like to take a deduction?

For example, if we have equipment that cost $400,000, can we arbitrarily say we elect $100,000 expense?

3. Can we elect to take a all $400,000 expense and not have a depreciation basis? Basically expense all in first year.

Using same example that we have an asset $400,000

[Tncincy]

What is the best way to learn DRD deduction for corporations?

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Bear-Bear]

Argh….I'm seriously ready to take this $&# exam. I'm just doing a few sets of 30 MCQ each night to keep my mind nimble, and perusing Wiley text for trouble spots. I hate the waiting game when you feel prepared and ready to roll.

[CPA2BEE]

@Dr Cash – Yes. Even though Beck only acquires 20% interest, he is still part of the controlled group transaction with the other shareholder. Say he had acquired 20% two years later in his own transaction, he would have to recognize the gain. But it is a cumulative 80% for these problems.

@jad – You can take Sect 179 and depreciation expense in the same year. The basis less the Sect 179 becomes the depreciable basis. It is up to management of the entity how much they want to elect to deduct (within range of compliance). This is usually a given on the exam questions. If you are able to Sect 179 expense the entire amount of the asset purchased, then yes, the depreciable basis is wiped out as it is completely expensed in that year.

@tncincy – Use this:

– Less than 20% owned = Deduct 70% dividends
– 20 – 80% owned = Deduct 80% dividends
– 80 – 100% owned = Deduct 100% dividends

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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