[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

[Fk]

any body have notes on Individual taxation. I am new to US taxation , finding difficulty to understand what to include in Gross income and what to exclude.

[Windel]

@Fayas

If you're using Becker material, page R1-4 which is the individual taxation schedule should be a good starting point as to what “above the line deductions” are as well as adjustments TO arrive at Adjusted Gross Income (AGI) vs. adjustments FOR AGI. On that page you should write your own acronyms to help you remember the above the line deductions vs. below the line. Ex. MOHAWKS helps me to remember standard deductions and SITCOM helps me to remember itemized deductions.

Above the line deduction (aka standard deduction)

M – Moving Expenses

O – One half of self-employment / Self-employment health insurance

H – HSA / IRA contributions

A – Alimony

W – Withdrawal penalty (interest)

K – Keogh

S – Student Loan Interest expense

Below the Line deduction (aka itemized deductions only taken if this amt. exceeds std. deductions)

S – State/Local taxes

I – Interest expense (home/investment)

T – Theft & Casualty Losses

C – Charitable contributions

O – Other miscellaneous deductions (subject to/not subject 2% of AGI)

M – Medical (in excess of 10% of AGI)

[jgarcia09]

@Fayas

I am not using Becker. I am using Roger as I had to purchase it myself and found Becker expensive

[Fk]

@jgarcia09

I have wiley Finding it difficult to grasp May be I am new to Reg

[WANNABE_CPA]

has anyone made a list of taxable and non taxable items for all tax topics..is it a good idea to write them down to refer frequently or would it take too long and waste of time?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

@Wannabe, while going through the book, working on MCQs, and making notes using MS Word, I am simultaneously compiling a list of various stuff on MS Excel with several worksheets:

-passkeys

-Forms/Scheds with description

-REG by numbers

-Taxables/Deductibles

-Nontaxables/Nondeductibles

-Form 1099

-Carryback/Carry-forward

-Etcetera

For me, It's easy to forget when I just study or memorize it. I need to keep a record of them all just like keeping my people's contact information written down on my directory list.

[WANNABE_CPA]

thanks AmorD ..i feel good about making them now..i felt i shouldnt be taking too long but still felt the need to have everything at one place because all this information is scattered throughout all tax topics.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Fk]

What is the purpose of Medical Saving Account for Individual Taxation

[Anonymous]

Not sure I understand this explanation. Please help. Answered based on: “Trust terminates when beneficiary dies.”

Dart created an irrevocable trust naming Larson as trustee. The trust provided that the trust income would be paid to Frost for 15 years, with the principal then reverting to Dart. Larson died after 10 years, Frost died after 20 years, and Dart died after 22 years. When does the trust terminate?

A.

After 10 years

B.

After 15 years

Incorrect C.

After 20 years

D.

After 22 years

You answered C. The correct answer is B.

A trust will terminate based upon the written document. In this case, once the principal reverted back to the creator of the trust, Dart, the trust would terminate. The principal reverted back to Dart after 15 years. The death of the trustee would be irrelevant to the trust termination. A new trustee would be appointed for the remainder of the 15-year term.

[Anonymous]

Is anyone else finding the business law section really detailed? I'm on R7 in Becker and found R6 to be full of little small details. Definitely not as bad as tax though.

[Anonymous]

For inherited assets, what is the basis if “no alternate valuation date was elected on her estate?”

This is from a Becker sim, where stocks were inherited.

If no alternate valuation dates are elected, shouldn't the basis be the original basis of the owner? Becker says its FMV at the date of the death.

[Windel]

@cpastudent22

As Tim Gearty would say “Think of inheritances as if you’re rich dead uncle (aka the decedent) JUST stepped up from the grave to give you a gift” The fact that it “JUST” happened…the basis would be the FMV. If you receive a GIFT then think of it as if your rich uncle ‘rolled over their basis’ so you would use their basis. If property has been distributed, sold, exchanged, or otherwise disposed of within the 6 months, the property is valued as of the date of the ownership change.

Inheritance = FMV [Exceptions: if Alternative Valuation Date is selected]

Gifts = same basis as the owner who gifted it.

[leglock]

if no alternate valuation date is elected, basis will become the fmv on date of death.

You see this alot with stocks. Your parents may have purchased a stock 20 years ago for $5 a share. When they die some 20years later, the price per share may be $100. Your basis will be $100 per share because you get the step up basis.

[Anonymous]

@leglock thanks abunch

[Anonymous]

MACRS confusion:

1. A computer is purchased for $45000 in Mar yr 1. It was sold in Feb Yr 3, the current year.”

Uses a 5 year, half year convention. 19.2 is the amt in the table. we must divide this in half for the year of the sale, and the result is 9.6% x 45000 = 4320.

Why do you divide this in half for the year in the sale?

What is the general rule for MACRS & sale of property?

[Author]

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