[jeff]

Welcome to the Q3 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]

Hi guys just popping in for my weekly “hello”– on the above question just remember that as a general rule (or at least for CPA exam purposes) if it is Reg-A or a Reg-D then it is fully exempt…. if there are exceptions (such as the issue being over the amount)- then it “technically” (or again as far as this exam goes) is not a REG-A / D issue it is a fully registrable one.

These two issues are considered “private placements” and the whole point of a company doing a REG-A or REG- D is to provide private companies with liquidity outside of a traditional banking route where they may or may not qualify for a loan/ do not want to take on debt. This is why investors need to be considered “sophisticated” and advertising and investors are limited.

I wouldn't spend too much time on REG A / REG D all though I would glance over the different types of REG-D issues 🙂

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]

The registration question is tough – even though you'd pick up on the “full” registration – both A and D say “All”. Here's the regulation A:

What is ‘Regulation A' – All truly does mean all

“Regulation A is an exemption from the registration requirements mandated by the Securities Act, applicable to small public offerings of securities that do not exceed $5 million in any 12-month period. A company that uses the Regulation A exemption for a securities offering must still file an offering statement with the Securities and Exchange Commission. While Regulation A offerings share some characteristics with registered offerings, they have some distinct advantages over full registration.”

Whereas I think answer D, it's only exempt if it's intrastate AND the issuer does over 80% of business in the state.

[rajwinder84]

LaidBackCPA, thanks for explaining about Hobby expense.

[rajwinder84]

I am looking for the correct answer for the question:

Which condition, the creditor don't have to notify the debtor?

Creditor can sell the collateral without notify debtor.
OR creditor can keep the collateral without notify debtor.
Please explain which one is correct

[rajwinder84]

Principal died on Monday and agent known about principal’s death on Thursday. When the agency is terminated?

[Lynnchu]

@rajwinder: in either condition to keep or sell, creditor has to notify debtor.
For sale option, debtor has the right to redeem the collateral by paying off the debt and costs BEFORE the sale.
For retention option, there's an exception. In consumer goods cases where debtor has paid at least 60% of the loan, the creditor MUST sell the collateral within 90 days after repossession, unless debtor waives this right.

Principal died on Monday. It's a termination of both actual and apparent authority by operation of law (therefore no notice to 3rd parties required to end apparent authority). So the agency is terminated on Monday.

[TheHoundThatRides]

I passed FAR by not sweating the small stuff. For example, with Leases, I just learned the concepts, capital lease rules TT-BPO-75-90 and amortization schedule journal entries. I didn't worry about stuff like real estate laws for leases that I feel were overly detailed and not likely to be tested.

But I am just starting with REG studying and I'm being bombarded with little tax details. Do I really have to spend 30 minutes trying to learn the kiddie tax? Am I gonna be asked up to what percentage something can be deducted? My brain can't identify the important stuff at all.

Should I just get through the lectures and just get an idea of what the MCQ commonly asks?

BEC - 78 (August 2015)
FAR - 80 (November 2015)
AUD - 73, 67. (Ok I gotta confess I was even more lazy this time around)
REG - August 27th, 2016

[Claudia408]

A distribution to an estate’s sole beneficiary for the Year 1 calendar year equaled $15,000, the amount cur­rently required to be distributed by the will. The estate’s Year 1 records were as follows:

$40,000: Taxable interest income
$34,000: Expenses attributable to taxable interest income
What amount of the distribution was taxable to the beneficiary?

Answer: 6,000

To me, this means the estate's max distribution is 6,000 (DNI) but they gave away 15,000 so is that why only 6,000 is taxed?

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

[tuanxn]

@Claudia408 although $15,000 was distributed, only $6,000 of it was taxable due to the taxable income limitation. The other $9,000 probably came from estate funds that were already taxed.

[csvirk]

@Claudia hows your prep going? My exam is this Sunday. I really want this exam to be done. I did about 5000+ MCQs yet still dont feel confident 🙁 … At this point I really want this exam to be done!

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

[Josh]

@csvirk & @Claudia408, I hope you pass! You're almost there!

[Teal]

What do the notes mean by: “Exam Trick: Executor of Estate NOT SE Income” in regards to SE tax?

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[csvirk]

Exam coming up this Sunday. I am overwhelmed by exam anxiety. Thanks to my supervisor who let me study at work, But seriously how to keep my head straight and stay focus? Tips would be great. Thank you Guys.

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

[melissahoff]

@ Teal, I think what it means is that if you get income from being the executor of an estate, it is NOT considered Self-Employment income on your tax return. I think that might be one of those questions that the CPA exam will try to trick you on.

@csvirk, test anxiety is the worst! I'll just tell you what works for me, and maybe it can be helpful? What I do is think rationally through all of the thoughts causing me anxiety. “what if I fail it?!?” – then I take it again. I combat each negative anxiety inducing thought with a positive/rational one. I will say it out loud or write it down if I need to. I also ask myself “whats the worst that could happen?” If I let the anxiety consume me, then I am unable to focus on MCQ, or reviewing my notes so I try to shut it down ASAP so I can actually do what needs to be done to pass.

AUD - 74,72,74,73,67,80
BEC - 69,80
FAR - 50,51,50,74,71,79
REG - 69, 72, 81.. and I am DONE...
Ethics-93

[cpa81]

Can anyone lead me to a link (if any) that has the list of all the REG TBS by topic?
I'd like to focus on specific topics and work my way accordingly…
Thanks!

[Author]

Replies