[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/

[Mary 2496]

Point taken … my fault. In light of that, it looks like the question itself has its facts jumbled between 2013 and 2014, which means the OP was correct. The asset isn't even available for a 179 election due to its price tag.

[Windel]

@ Mary 2496

My exam is Monday 10/6 so I'm here in the office where it's quieter than being at home with my 2 y.o son, studying like a mad-man. My approach (using Ninja MCQ):

Saturday 10/04

1. Review flash cards R1 – R3 (mostly the ones with pneumonic or the most difficult to remember)

2. Select the categories that are relative to R1-R3 (Ind./C & S CorP Tax, Adjustments & Deductions) Select the option for 75 MCQ, then choose the “troubled questions” category. Once I complete that, then I run another 75 MCQ within the “all questions” category.

3. Repeat for R4-R5, and then do the same for R6 – R8. This should take me about 8hrs.

Sunday 10/05

1. At 9am, head into the office where it’s quiet. Review my notes (1hr)

2. Take a 100 MCQ progress test for all chapters

3. There are 69 Sims in NINJA and I’ve only gone through 28 so I will we tackling at least 25-30 on Sunday.

4. Hopefully I should be done around 8pm

5. Get some sleep, wake up and face my fears.

[Anonymous]

I remember someone else on the forum pointed out a few other REG mistakes on ninja mcq… hopefully it doesn't adversely affect anyone exam day :/ (I'm using them too)

[Anonymous]

what does destruction of the subject matter of the agency even mean?

[Anonymous]

How do you guys study or remember all the stuff for the tax sections?

[Mary 2496]

@ CPA hopeful – I've worked in public accounting (including tax) for several years so for me, it's repetition. Still, there are some tax laws that I barely refer to, which gave me trouble the first time I tested REG (73). Basically, I am going with memorization – constant repetition on those.

[Mamabear]

Help please. Wiley book question about MACRS for assets purchased in the 4th quarter using mid quarter convention, 7 year life, cost of $56,000. The formula to determine the first year's depreciation is $56,000 * 2/7 * 1/8. I understand the 2/7 because of DDB, but I don't understand how they come up with 1/8. Anyone know?

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Windel]

S.O.S

I'm claiming B.S on this NINJA MCQ answer. What am I missing?

---

Smith filed his individual income tax return on April 15, 20X1. What is the time limit for the IRS to collect after a tax is assessed?

Incorrect A.

3 years

B.

6 years

C.

10 years

D.

No time limit

Correct Answer is C. And according to NINJA “The IRS has 10 years to collect after a tax has been assessed. Collection may be by levy or court proceedings. The taxpayer and the IRS can agree to extend the period for collection.”

Perhaps I've got my wires crossed but I thought the normal assessment is 3yrs, 6yrs if there's an omission of 25% or more and unlimited time for assessment if there's fraud. Am I wrong?

[Windel]

Oops. Upon further review, I noticed the question asked for the “time limit AFTER ASSESSMENT.” I don’t that I’ve read that anywhere in Becker…have you?

[Anonymous]

@Mamabear let me try to explain it even though I don't really understand it much myself (I know so confident). As you get closer and closer to the end of the year the depreciation amount your allowed to take decreases.

Asset purchased 1/1-4/1 you use 7/8

Asset purchased 4/1-7/1 you use 5/8

Asset purchased 7/1-10/1 you use 3/8

Asset purchased 10/1-12/31 you use 1/8

The year is broken up into 4 quarters so for every quarter that passes you get to deduct less and less depreciation. I'm sure the IRS does this so you don't buy a bunch of assets at the end of the year just to take a bunch of depreciation and lower your taxable income. Hope that helps and sorry if it doesn't maybe someone else can explain it to US better 🙂

[Mamabear]

I think the time limits you are referring to are how long they have to audit the taxes and request a resubmission. That question is referring to how long they have to collect the money owed, not reassess the taxpayer.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Anonymous]

@King I never heard of that I picked the same answer as you as well. Like I said earlier I think some of the ninja answers are wrong… your not the first person to point out discrepancies. From my understanding it's up to 3 years, 6 if 25% understatement and unlimited for fraud.

[Anonymous]

Good point mamabear that's probably it then

[Mamabear]

@aspiring–Thank you! The explanation about less and less and loading up at the end of the year really helps! I think i just figured out that if you slice all the quarters into halves (for half quarter convention) you get 8 half quarters. I was having trouble with the 8. Oy. Gonna be a long 8 weeks.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Anonymous]

@king

page 3 bottom right corner

https://www.irs.gov/pub/irs-pdf/p594.pdf

[Author]

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