[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/

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

[Tax lady]

It is A mama. The way I remember it is if donor's basis is lower than FMV, use donor's basis. If donor's basis is higher than FMV, then use FMV. Taxes paid are just added to the basis so do that before determining which to use.

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

[Mamabear]

Do you guys use your notes when you do this quizzing? I never did before and I would get so frustrated at myself because I kept getting things wrong and then I read Kimboroni comment in another post that she always looks at her notes while quizzing and looks up anything she doesn't know off the top of her head so I decided to try it. I think it actually is working a little bit because it makes more sense as I try to type it to you guys than it did when I was just reading it to myself.

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!!

[Tax lady]

Wynn, a single individual age 60, sold Wynn’s personal residence for $450,000. Wynn had owned Wynn’s residence, which had a basis of $250,000, for six years. Within eight months of the sale, Wynn purchased a new residence for $400,000. What is Wynn’s recognized gain from the sale of Wynn’s personal residence?

$0

$50,000

$75,000

$200,000

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

[Mamabear]

OK–so just use whichever one is lower between donor's basis and FMV.

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!!

[Tax lady]

I actually don't use my notes. But I am testing Thursday so I don't want to be relying on notes at this point.

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

[WANNABE_CPA]

I need help with first ques… How is the new basis 30k?

As per my formula 35000(FMV of new ) – Deferred gain(12000)=23000 ???

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

[Tax lady]

First figure out if it's going to be a gain or loss, then determine whether to use AB or FMV.

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]

@ wannabe here is the Wiley explanation:

This answer is correct because the requirement is to determine Berger’s recognized gain and basis for the investment real estate acquired in a like-kind exchange. In a like-kind exchange of property held for investment, a realized gain ($17,000 in this case) will be recognized only to the extent of unlike property (i.e., boot) received. Here the unlike property consists of the $7,000 cash and $5,000 FMV of the motorcycle received, resulting in the recognition of $12,000 of gain. The basis of the acquired like-kind property reflects the deferred gain resulting from the like-kind exchange, and is equal to the basis of the property transferred ($30,000), increased by the amount of gain recognized ($12,000), and decreased by the amount of boot received ($7,000 + $5,000), or $30,000.

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

[Mamabear]

I don't have any notes on individual tax, but I think it is A because the gain would be $200K except that he bought another residence within 18 months so he is allowed an exclusion up to $500K? My numbers my be way off though. I didn't spend much time on phaseouts.

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]

It is Gain of $12000 , and FMV is used right?

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

[Mamabear]

I think her response was to me. You don't do anything with the FMV of the land in question #1 I don't think.

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]

Is it A for 3rd… As max exclusion he is eligible for is $250000, and he has gain of $200000, there no gain will be recognized.

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

[Tax lady]

Mama, A is right but the single amount of exclusion is 250K, MFJ is 500K.

Wannabe Now I'm confused as to why the boot was deducted from the 30+12?

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

[Mamabear]

Thank you! At least the $500K was in there somewhere. 😉

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!!

[Tax lady]

In 2011, Bill Yao bought shares of stock as an investment at a cost of $20,000. During 2013, when the fair market value was $15,000, Bill gave the stock to his son, Tom. Tom sold the stock in 2014 for $12,000. Tom’s holding period of the stock for purposes of determining his loss

Started in 2011

Started in 2013

Started in 2014

Is irrelevant because Tom received the stock for no consideration of money or money’s worth.

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]

Replies