[jeff]

Welcome to the REG CPA Exam study group for July & August 2018 exams. 🙂

Please introduce yourself & when you’re taking your exam (approximate timeframe).

REG Study Group Links and Resources:

1. NINJA Monthly – Full REG Course for $67/mo
2. How to Study for REG with NINJA Only
3. How to Pass REG in 20 Days
4. How to Retake REG After Failing
5. Video: Study Advice for REG
6. CPA Reviewed Podcast
7. CPA Exam Score Release Dates
8. NINJA MCQ Trending vs Actual REG Scores
9. I Passed the CPA Exam!
10. I Passed REG!
11. NINJA REG SIMS List by Topic
12. Free Downloads: NINJA REG

[Anonymous]

Good for you, that's what I hoped you would say. All fingers are crossed for you!

[Tncincy]

Late night study tonight. Last night went well, I felt a lot better about my effort. I know, who cares, but I just want to say since I vented the other night.

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

[Starved_Wolf]

Hi, sorry if these questions are stupid but..

Why does a partner's basis increase when he assumes the liabilities of others in the partnership?
Why do distributions reduce basis and why are distributions not taxable?

im doing pretty good so far on the mcqs but i realize i'm just memorizing everything and failing to understand the why behind all of this.
Like okay, i get that i need to deduct distributions from basis and stuff but why?

[Operation_CPA]

Currently confused on the answer to this NINJA MCQ, please advise! I thought the answer was B, because the Becker text specifically excludes royalties from oil, gas, mineral, or copyrights. See the “NIRD” mnemonic, letter R on page R4-39. However, NINJA it says the answer is D. Thanks in advance!

All of the following can be considered personal holding company (PHC) income except:

A. rents.

B. gas royalties.

C. estate and trust income.

D. capital gains.

[Shak]

@Starved_Wolf

1- From my understanding, if you are liable for more (taking on a liablity), your basis will increase. You have more to loose. So when you take on more liabilities you are increasing your risk.

2. If you are receiving a distribution you are decreasing your liabilities. Which means you are decreasing your risk.

Let me know if this makes sense.

[Anonymous]

@Operation_CPA D is the correct answer. Capital gains are specifically excluded from personal holding company income under §543(b)(1)(A). Oil and gas royalties may be considered personal holding income unless they constituted 50% or greater of adjusted gross income. Copyright royalties can be subject to PHC tax as well under certain circumstances. Honestly, Becker wants to simplify the rules for you, but they are flat out wrong in excluding them as possible PHC income.

[Tncincy]

I was looking at gas royalties as a % of adjusted gross income for the PHC , so in my mind it is a form of income therefore, I chose capital gains. So doesn't ninja give an explanation? because I am definitely using the best answer concept.

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

[Anonymous]

Hi @Tncincy, the key here is that the question asks which of these CAN be considered PHC income (or rather which cannot). Capital gains are NEVER PHC income, but A-C all can be given certain circumstances.

Hope this helps

[Tncincy]

@Chandler thanks for the response, and yes it makes sense.

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

[Tncincy]

@Chandler , I'm sure you have been asked a million times what review course did you use and what were your time tables. Your scores are amazing bye the way. 🙂

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

[Anonymous]

Thanks I appreciate that! I used Becker exclusively for my exams (had a ridiculous discount- $500 for the complete package). I started studying January 2nd which was also my first day employed FT as a tax associate. You can tell more detail from my score dates, but I spent almost 4 weeks on REG, roughly 5 weeks on BEC and AUD each and about 8 on FAR. For me, I looked at studying as second job. For the first three exams I probably averaged 20 hours a week or more and never really took any weekends off. FAR was after busy season, so I took it a lot slower and basically only studied during the week. I would read each chapter in my books and then go to MCQ. I did all of the MC, but very very few SIMs. In the review stage, I used progress tests to hone in on what areas needed work and re-read/learned those chapters. Personally, I did not find watching the lectures worth any value. It just took them 2-3x as long to go through what I could read.

Let me know if you have any other questions, I can be much more specific.

[Livliv101]

Hi everyone!

I'm having a really hard time for some reason understanding when you can take a “for AGI” deduction for retirement contributions to an IRA (both traditional and Roth). I'm really confused on the phase out numbers we need to know and what happens if he/she is a participant or the spouse is a participant in the company's retirement plan. Can anyone help me learn the rules?

Thanks!!!

[Tncincy]

I had a good study day today. I was a little concerned about corporation so I went back and watched the Ninja lectures. yes, I feel relieved. So I guess it's good to have a plan b. I hope study is going well for everyone :-). In for another late night.

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

[Anonymous]

I think memorizing AGI phaseout for IRA deduction is a MUST otherwise it will be very difficult to get this question right in the actual test.

Gene and Olive Olson are married, under age 50, and file a joint return in 2017. The Olsons are both active participants in qualified retirement plans. The Olsons have adjusted gross income of $109,000 for 2017 and each contributed $5,500 to a traditional IRA. What is the deduction for IRA contributions for the Olsons in 2017?

A.
$0

B.
$5,000

C.
$5,500

Incorrect D.
$11,000

You answered D. The correct answer is C.

In 2017, the phaseout of the IRA deduction for married taxpayers participating in another pension plan filing jointly exists for AGI between $99,000 and $119,000. Since their AGI is halfway between $99,000 and $119,000, only half of the combined contribution of $11,000 is deductible.

[cpabro]

Hi, can someone please help me?

Will the REG Q3 exam be tested with figures from 2017 or 2018? (i.e. Section 179 limitations, deductions, exemptions ,etc)

I am currently studying with Wiley and all the information is based on 2017 information. I don't know where to find this simple piece of information.

Thank you in advance.

[Author]

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