[jeff]

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

[WANNABE_CPA]

Yes i was in Q2 FAR, it was a great group. I owe my FAR pass to it 🙂

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

[Mamabear]

Me too! Ok. #1: Which of the following conditions must be present in a divorce agreement for a payment to qualify as deductible alimony? A. Payments must be in cash B. The payment must end at the recipient's death

A

B

Both

Neither

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!!

[WANNABE_CPA]

A?

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

[MICpaCandidate89]

Both, there are 4 conditions to qualify as alimony: 1. Must be paid in cash or check 2.cant live with your ex 3.must be tied to the spouse not the child and 4. Must end when spouse ends (death)

[Mamabear]

Both. It must be cash (not property) and it must terminate when the recipient dies.

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!!

[Mamabear]

I am also under the impression, but cannot find in the book, that it terminates once the recipient remarries so I just equate remarrying to death to remember them both. 🙂

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!!

[MICpaCandidate89]

I agree @mamabear Remarriage also, the notes I have say “must continue until death or remarriage”

[Mamabear]

In 2010 Iris King bought shares of stock as an investment, at a cost of $10K. During 2012, when the FMV was $8K, Iris gave the stock to her daughter, Ruth. If Ruth sells the shares of stock in 2013 for $7K, Ruth's recognized loss would be

A. $3K

B. $2K

C. $1K

D. $0

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!!

[WANNABE_CPA]

Yes it has to end when the recipient remarries..this is not in the book but i guess general knowledge heard from few divorce cases.

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

[WANNABE_CPA]

Is the stock sold to the daughter or given..if sold i think answer 1k?

Is it suppose to be a tricky ques…its confusing me lol

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

[WANNABE_CPA]

Future selling price – FMV ? Is that right?

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

[Mamabear]

It was given. It tricked me. I went with A because I thought the basis of the mother is what was used because it wasn't sold to a nonrelative, but the answer is C because the IRS wants less loss to be recognizable so they go with the lower of the FMV or the mother's basis. In this case the FMV is lower so the loss is only $1K. I think just remembering that the IRS wants it to be less appealing for the relative transactions should help with those types of questions. 🙂

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!!

[WANNABE_CPA]

so we will take it like a non relative party transaction as Daughter is selling to nonrelative right?

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

[Mamabear]

I assume so. I really need help with basis. Uggg

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!!

[WANNABE_CPA]

I know, me too i thought i understand it..i ve to go over it once again…

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

[Author]

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