[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[SomedayCPA2015]

The 100,000 in dividend revenue is not included in the gross income from operations, so you must add it to the 600,000.

700,000 – 400,000 – 80,000 (DRD) = 220,000

Does that help?

REG - Passed
BEC - Passed
AUD - Passed
FAR - Passed!!!! I have my life back.

[Tax lady]

@Julia. I'm trying to figure this out too. Should the answer be 220,000? (300,000-80,000)?

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Tax lady]

@CPAHOPEFULL I think about joint tenancy as someone you buy a house with. If you buy a house with your spouse and they die then their interest goes to you. With tenancy in common, I think about a timeshare because they can sell, will, or mortgage their piece of the interest.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Anonymous]

That's right, you have to add dividend income to gross income first, then use the DRD.

Thanks tax lady, that makes sense. I just don't get the right to survivorship after the death.

[Julia_anika]

Wait, DRD should be calculated as 80% * taxable income (if no loss created by the DRD), and not the dividend income.

80% * 100 is only calculated when there is a loss situation.. No?

I'm totally lost (((

NYC, NY
FAR - 82 Jan 2014
AUD - 86 Apr 2014
BEC - 77 Aug 2014
REG - 79 Nov 2014

[Tax lady]

You multiply the percentage by the dividends received. DRD is limited by taxable income unless the DRD creates or adds to a loss. In your example, this was not an issue because income was higher than the DRD. If taxable income is lower than dividends received, then you multiply the percentage by taxable income. If I am incorrect, then someone please chime in. This is how I have learned it.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Tax lady]

Example: If corp owns 20% of stock in a domestic corp, and has taxable income of $200 and dividends rec'd of $100, then DRD = $70 (70% * $100). If taxable income were $90, and dividends were $100, then DRD is $63 (70% * $90).

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Anonymous]

No, you're right that's exactly how it works. So seems like you are ready to go for the exam tax lady.

[Tax lady]

I don't feel ready! LOL

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Julia_anika]

Tax Lady, many thanks!!!

NYC, NY
FAR - 82 Jan 2014
AUD - 86 Apr 2014
BEC - 77 Aug 2014
REG - 79 Nov 2014

[Anonymous]

You are ready, just look at the amount of questions you have answered here.

[iman_a]

AUD - 96
BEC - 85
REG - 81
FAR - 11/28

[romajoon]

Taking REG again in about a month. Any advice on how to tackle this brutal section? I preformed strong on most sections of the MCQ, but weak on SIMs and Taxation on Entities MCQ. I think just hammering MCQ and re-writing my notes should help a lot.

AUD 2/25/14 - 82
BEC 4/14/14 - 82
REG 7/5/14 - 66, 80 (11/30/14)
FAR 10/13/14 - 76
ETHICS - PASSED
EXPERIENCE - DONE

[linkman311]

@lobnat, thanks I totally blanked on the phaseout range part.

I'm ready to get this last part over with. Thanks for those that post frequent questions and answers, this is really helpful. The Q3 BEC study group had a number of people posting questions/answers which really helped – I'm pretty sure most/all(?) of the people who were active and taking it seriously passed.

Stick with it everyone! Part of the prestige is having to earn those letters. This quote always gets me going (think of non-CPA average Joe people you know):

“…That's the difference between you and me – you want to lose small and I want to win BIG.”

Confidence is a prerequisite for success

FAR - 1/1
AUD - 1/1
BEC - 1/1
REG - Q4

Have Becker, wish I got Roger

[Tax lady]

I finally have alimony recapture figured out! This was something I didn't know the 1st go round…..

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Author]

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