REG Study Group Q4 2014 - Page 35

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  • #629677
    Anonymous
    Inactive

    I'm confused about the LIFO recapture tax for S Corps (R3-49 for Becker).

    Is that saying that S corps have to use LIFO? So if I was a C Corp using FIFO if I turn into an S Corp then I have to use LIFO and recapture (include in income) the extra inventory $ I had under FIFO?

    #629678
    Anonymous
    Inactive

    When it comes to charitable contributions….

    1. What is considered appreciated property?

    2. How do you calculate the amount you can take?

    #629679
    Mary 2496
    Member

    What I think is right —

    1. Things that increase in value (artwork, stock, etc.)

    2. If it was purchased up to four months ago, you use the purchase price or the difference between purchase price and FMV, whichever is lower. If it was purchased longer than that, you use the FMV.

    — The contribution is then limited to 30% of AGI.

    Someone please correct if I am wrong.

    #629680
    Mamabear
    Member

    I think you have to hold it for at least 12 months before you use FMV. Less than 12 months you use purchase price (basis)

    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!!

    #629681
    Anonymous
    Inactive

    Basically long term capital gains (> 12 months) = FMV limited by 30%

    Short term capital gain (=< 12 months) = NBV (Becker doesn't state a percentage limit)

    So if I had a stock that I bought for $100 and it's now worth $200, and…

    Case A: I held the stock for 12 months

    I can deduct $100

    Case B: I held the stock for 12 months and a day

    I can deduct $200, provided my AGI isn't $666.67.

    #629682
    Mary 2496
    Member

    I'll have to find it today. I am studying REG anyway, all weekend. There is something in Becker that has to do with a four-month rule. I will post it when I find it.

    Edit — just looked. Sorry. I got hung-up on the fact that the MCQ used “four months” when the taxpayer donated stock as short-term property. It would follow the same rules as 12 months for deciding ST or LT. My fault.

    #629683
    tami3492
    Participant

    uggh, I swear DNI and AMT will be the death of me. Does anybody have any helpful tips in remembering either of these?

    FAR 7/8/14 - 88 - Becker live course
    REG 10/14/14 - 82 - Becker live course, Ninja notes and audio
    BEC 11/25/14 - 88 - Becker live course, Ninja audio, Wiley book for extra questions
    AUD 2/3/15 - 94 - Becker self study, Ninja audio, Wiley book for extra questions

    #629684
    Mary 2496
    Member

    Following for AMT. Also looking for good tips.

    #629685
    Amay
    Member

    So I finally bit the bullet and scheduled my test for the 18th. A little further than I would have liked, have to commute an hour, but it's on a Saturday which means no traffic. I want to take Friday off work but I am afraid to ask for the day off or even tell my boss when I am taking my test. I asked them last time for a few days to study and take the test because I was behind and really thought this would be it for me, but as you can see from my signature, I missed “my last exam” by 1 point. I guess I am just embarrassed to admit it to them out loud and ask for yet another day off. I would just tell them I need a day for my exam, and I don't even have to use vacation, but still. What do you guys think I should do?

    BEC: 73, 81
    AUD: 85
    FAR: 71, 77
    REG: 74, 75...finally DONE! 😀

    *This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

    #629686
    Windel
    Participant

    @Amay

    You have absolutely “NOTHING” to be ashamed of. You’re one exam away from the AICPA agreeing with and certifying what you already know…that you’re a CPA who’ve haven’t received their crown(official designation) yet.

    Is your boss a CPA? If s/he is…then they understand all the anxiety, patience, persistence and discipline that go into preparing and ultimately passing the CPA. If they’re not, then they certainly have no right to judge someone that had the courage and fortitude to step up to the challenge and overcome such a well-respected designation within your field of expertise.

    I guess what I’m trying to say is…”Just ask for a personal day.” There’s really no need to explain why you need a day off and your employer has no right to ask you why!

    #629687
    Amay
    Member

    Thanks King for your advice! You are 100% right. Yes, they are all CPAs. I think they would understand and I am just letting my fear in…

    BEC: 73, 81
    AUD: 85
    FAR: 71, 77
    REG: 74, 75...finally DONE! 😀

    *This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

    #629688
    Anonymous
    Inactive

    Good luck, Amay. Man, that was so close. But you were sooo good and I am sure you'll get it this time!

    p.s.

    I don't like long commutes going to my testing date. I remember my first AUD attempt. It was the very last day of the testing window before the clarified SAS. I had no choice but to take it when there was only one available testing center left that's 1.5 hours away from my house. The schedule was 1PM so I thought, I had enough time to drive from home that day. By the time I arrived at the testing center, I felt already tired even while I had not started the test yet. I knew my body, I knew I would be really worn out during the entire 4-hour test. By the time I faced the SIMS and the clock was ticking really fast, I was so beat up. I felt I was being chased by a bull while I was running in a red dress. I finished the test just for the heck of ending it, ding-dang, time was up!

    I scored 72. I was thinking, if only I got a room in a nearby hotel, instead of having a long commute that same day, that would have made a huge difference. Who knows?

    The last time I tested (May), I had 2-hour commute. Yes, I paid a room but hey I scored 78. It's worth it!

    For me, when the drive is more than 30 minutes, I am getting a room! I am not a morning person, but I am more effective to test early in the morning than later in the day.

    #629689
    Anonymous
    Inactive

    Question:

    How much exclusion can the surviving spouse use?

    Situation:

    Adam and Eve got married in January 2010.

    They bought a house the same month and lived there together.

    Adam died in February 2011.

    Eve sold the house in December 2011.

    #629690
    Mamabear
    Member

    @Amay–Don't be ashamed at all. Everyone at my office that has a CPA–Controller, Director of Finance, CFO, and former CEO ALL failed at least once. No one looked down on me when I told them I failed REG in July. In fact they were all extremely supportive. Ask for that day off! Good luck!

    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!!

    #629691
    Mamabear
    Member

    How are you guys approaching the numerous tax credits? General understanding only or more in depth–threshholds, percentages, formulas? There are so many!

    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!!

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