[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

[cottonkandi]

Question about Corporate basis and boot. Becker says under section 351, shareholders contributing property in exchange for stock no gain or loss is recognized if they meet the 1. 80% control test (does not include FMV of service) 2. No receipt of boot. Under receipt of boot, in page R4-4, they list cash withdrawn (boot received may generate gain to transferor); and receipt of debt securities. My question is, what about debt assumed by the corporation that does not exceed NBV or they received a non money boot, wouldn't that also trigger gain recognition? I ask because it does not specifically state in that passage that those items are considered recognized gain. In the Basis of Shareholder Computation in the next page shows that liabilities assumed by the corporation and FMV of nonmoney boot received is a reduction to the Shareholder's basis. I would really appreciate it if someone would help clarify this issue. Thank you!

[Starved_Wolf]

@Chandler, thanks a million, you explained it really well!
To everyone taking the exam this week, wish you all the best of luck!!

@Kgal, you probably did a lot better than you think! Scores are released 9/19 for exams taken after 8/31

[Anonymous]

@Starved_Wolf, no problem!


@Cottonkandi, Okay so I think the best way to answer this question is to keep 351 simple for purposes of the CPA exam.
-If 80% rule and no boot is received, then there is never gain recognized unless liability transferred in exceeds basis of the property.
-If boot is received, it is taxable to the lesser of gain realized or cash + FMV of non-cash property received. Yes, non-cash boot is taxable as gain based on FMV.

[sheskierk]

Hello all,

Taking REG 9/10. Looking for any last minute advice regarding specific topics that I should pay careful attention to. Also, for these last few days should I focus on MC or a combination of SIMS and MC? Any advice would be greatly appreciated, really hoping someone can give me some insight.

FAR – 76
AUD – 77
REG – 9/10
BEC – TBD

[Anonymous]

@Sheskierk Just got done taking REG and I would say mainly focus on MCQs. I did a few SIMS as to help me and I don't think they were that helpful. Maybe do a few research SIMS and some on the entities (C corp, S Corp, Partnerships). Other than that I would do MCQ's for the most part. I used Becker and did 15 question intervals of each section (R1-R8) and then studied up more on sections that I got 2 or more wrong on. Hope this helps

[sheskierk]

@Nelly thank you very much I really appreciate the help. I myself am also using Becker with Ninja MC as well. I used ninja mc for AUD and FAR and I really liked it. But I am not that happy with the ninja mc for REG. So mainly focusing on Becker MC and Becker's final review MC. I also did all the MC in the Becker Mock exams, which helped a lot. Probably just going to focus on MC for the most part with a SIM or 2. From my past studying experience for FAR and AUD, I would say I mostly did 90% MC and 10% SIMS. The reason being is the SIMS take so long to get through, as opposed to running through MC. And the SIMS on the actual exam are nothing like the Becker practice SIMS. On the actual exam they always through in some curveballs with situations that you've never seen before. So my plan is to score high on MC and pick up partial points within each SIM. Also, regarding the various individual credits, such as Lifetime Learning Credit, Child Tax Credit, ETC. Should I try and know all the rules regarding those various credits? It seems like a lot of little details, which I would rather spend study time on other things. And how do you think you did?

FAR – 76
AUD – 77
REG – 9/10
BEC – TBD

[Starved_Wolf]

Hi @Chandler,
Could you explain this problem to me?

You have been asked to calculate the maximum amount of deductible theft and casualty losses for several clients in the preparation of their Forms 1040, U.S. Individual Income Tax Return, for year 2.For each situation below, calculate the deduction for theft and casualty losses for year 2 before any floor or AGI limitations with respect to itemized deductions, if applicable. Disregard any casualty gains.

Jackson owns a farm purchased for $1,200,000. In year 2, a fire in the barn resulted in destruction of the barn and livestock. The cost of the barn and livestock was $500,000 and had been appraised at $600,000 before the fire. Jackson expects to receive $700,000 from the insurance settlement in January, year 3.

The answer is 0 but there isnt an answer explanation. Is it 0 because event doesn't qualify as a deductible casualty/theft loss? or is it 0 because cost of barn $500,000 minus insurance recovery received in year 3 ($700,000) = ($200,000) so then this would be a gain but the question says disregard any gains so its 0? Which brings me to another question.. the insurance proceeds isnt received till year 3, is it right to include it in year 2?

[Starved_Wolf]

The AICPA practice sims for REG are really really hard. I couldn't get through the S corp one. Are the real exam sims actually that difficult?

[Anonymous]

@sheskierk I would say for the credits you should know what they are and the amount, but don't stress too much about the phase outs. Definitely know C corp, S corp, and Partnership basis, the contributors basis, and liquidating and nonliquidating distributions. I felt like that was a crucial topic to know. I'm not sure if others would agree, but that's just how I felt. The one consolation is that you can use the authoritative literature during the SIMS, so anytime that I was not sure I made sure to use it. Just make sure that you leave yourself enough time. I took about 1 hour to do the MCQs which left me plenty of time to look things up.

[cottonkandi]

@Nelly – any advice on BLAW and Ethics topics?

[Shaun425]

For DNI, what is the deal with tax exempt interest? Some places I see it is added in the calculation for DNI, and some it is subtracted?

[fsugirl2005]

I took REG today and my advice to everyone getting ready to take it is study everything…lol. I know that doesn't help much but I was hit with everything today. Worse part about it, the stuff I wasn't comfortable with I kept getting questions on. The stuff I knew well, didn't see a question…lol. The SIMS were not too bad even though I didn't do one of them. I drew a blank and said screw it. I swear the tax code was written by a bunch of psychopaths whose main objective is to make everyone's IQ drop. I felt dumb as a stump today.

I'm putting it out of my mind and prepping for FAR which is my strongest topic.

AUD - 10/21/16 (75----07/2010 expired)
FAR - 10/28/16
BEC - 11/2016
REG - 01/2017

Using Gleim CPA Review, Ninja Audio, Ninja Book

[Starved_Wolf]

I just finished taking my exam and I feel really sad. My first sim was the research question and I couldnt find it. I searched and searched ..couldnt find it so i guessed and moved on. I found the answer when i was on my last testlet and of course i couldnt go back and change my answer. Argh how upsetting, it was so easy too. It sucks because ive always gotten the research question right on past exams and it sucks i didnt get it right this time around. Sigh im so upset with myself because i know i didnt do so great on the other sims. I felt okay on the mcqs though but dont know it its enough for a pass. Ahh im just hoping for the best 🙁

[El_Stillo]

I also took reg today, and boy it was just a hot mess. two of the sims were just a disaster, i thought I was prepared but nope nowhere close. I'm using wiley and I'm not sure if it is working or not. Did most of the test bank and I'm thinking I've just memorized the answers. How are others preparing for reg?

[jake]

I am taking the exam on Monday. What should I focus on more? Is it worth spending much time on Blaw for last minute review? But I think studying taxation would be more critical.

[Author]

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