[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/

[Anonymous]

@rzr, jealous man…I can't…all messed up on percs from my surgery…

[WANNABE_CPA]

hey all…i have a question..might be a silly one, but since first time ever doing this..

In becker they refer dependency exemption requirements as CARES(qualifying child) OR SUPORT(qualifying Relative).

Does all components of one of these, say Qualifying child, have to be there or one of them. It doesnt mention one of them so i assumed all and in a question as follows

a child 19 yrs old full time student earned $4500 as a babysitter, his main place of residence is parents house though temporary absence to attend school.

As per the age rule of the child should be under 19 yrs of age…shoudnt this child be not qualified child?

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

[rzrbkfaith]

You can be a qualifying child up to age 24 if you are in school and the question says the person is a full time student

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[WANNABE_CPA]

ohhh..stupid mee…thanksss…i just totally forgot it lol

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

[rzrbkfaith]

It always helped me for BEC when @M.O.D. would post questions… so I am going to post some questions too. Hope this helps!

Wallace purchased 500 shares of Kingpin, Inc. 15 years ago for $25,000. Wallace has worked as an owner/employee and owned 40% of the company throughout this time. This year, Kingpin, which is not an S corporation, redeemed 100% of Wallace's stock for $200,000. What is the treatment and amount of income or gain that Wallace should report?

a.$200,000 long-term capital gain.

b.$0

c.$175,000 long-term capital gain.

d.$175,000 ordinary income.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Hokie2]

does anyone have any mnemonics they use to memorize the individual income tax formula? I wrote down SSMAKESHIFT for the adjustments awhile back. I'm studying with Becker and starting final review today, but I am not at all confident in my ability to recall this material.

FAR 87
BEC 87
AUD 90
REG ?? 10/3/14

[Anonymous]

for those of you with the 2014 BECKER book:

a mCQ just: “According to the 2013 tax law, taxpayers may claim either sales tax or state and local income tax, whichever is greater. This provision was not renewed for 2014.”

does this mean if the CPA exam asks if taxpayers can claim either, the answer will be no, since it wasn't renewed?

[Anonymous]

The CPA should inform the taxpayer of the penalty risk UNLESS the transaction, at minimum, meets the more-likely-than-not level of support. I would think the CPA should inform the taxpayer regardless of the level of support.

[Anonymous]

Self employed health insurance is deductible to arrive to AGI.

What about if you're not self employed but pay for health insurance?

[leglock]

@cpastudent

i asked the very same question and was advised that the answer would be no since it wasn't renewed, so you are correct. There are some tax credits too that expired.

@cpa8488

I think the Becker section leaves alot to be desired with respect to the cpa's obligations and ethics and would strongly advise perusing Circular 230 for more clarity. (The whole document is 47 pages but only about 12 of it is applicable)

Thankfully, as of 7/25 i'm done with REG.

[leglock]

if not self employed but pay your own health insurance, it is not an adjustment for agi but rather it is an itemized medical deduction subject to the 10% of agi rule.

[Anonymous]

question for becker users: when the homework question says adapted does that mean it's an old cpa exam question or is it an old cpa exam question that becker changed around? Also, some of the homework problems just say cpa-1234 are those becker created questions? just curious if anyone knows the answer to this.

[Windel]

Question to the NINJA MCQ/Notes & Audio users:

Current Situation –

I'm planning on taking my Reg exam on 10/5. I'm currently using the Becker 2014 materials, Ninja MCQ's and Kaplan Schweser audios (provided to me by a fellow cap candidate). I've read every chapter R1-R8, taken notes, completed 88% of the Becker MCQ's, 42% of Ninja MCQ's (but I'm certainly not happy with my average scores of 66) and I'm currently in the process of taking 1 practice exam per day until October 4th.

Question:

In your opinion, do you think that it would beneficial to purchase the Ninja notes & audio at this point?

[mikiluv]

so confused with corp basis….please help?

Porter, the sole shareholder of Preston Corp., transferred property to the corporation as a contribution to capital. Two years later, Corley transferred property to the corporation in exchange for a 10% interest in corporate stock. The property transferred was valued as follows:

Porter's transfer

Basis $50,000

FMV $250,000

Corley's transfer

Basis 200,000

FMV 500,000

What amount represents the corporation's basis in the property received?

Answer= 550,000.

Becker's explanation = “Porter's transfer is not taxable because the 80% control test is met. The corporation's basis in the property is the basis of $50,000. Corley's transfer is taxable because the 80% control test is not met. The corporation's basis in the property is $500,000. The corporation's total basis in the properties is $550,000 ($50,000 + $500,000).”

OK, so now I'm just straight confused with Corp. Basis…I thought Corp. Basis was simply the Shareholders' basis (NBV) + Shareholder Gain recog with the exception being that corp's basis = FMV only if NBV> FMV.

Based on my understanding of Corp Basis, the answer should then be 50,000 NBV+ 250000NBV = 300,000?

Thx in advance!

[Anonymous]

@mikiluv the corporation's basis of Porter's property transferred is $50,000 since Porter is the sole shareholder of the corporation (meaning he owns more than 80%). If a shareholder owns more than 80% then no gain or loss is recognized when property is contributed for the formation of the corporation. As for Corley, he contributed property in exchange of 10% which means he can recognize gain if the property contributed is appreciated. The property contributed has a Basis of $200,000 and a FMV of $500,000 which means he will recognize a gain of $300,000. The basis of the property for the corporation is usually Basis of the property + any gain recognized by the shareholder. So for Porter's property the corporation will recognize only $50,000. For Corley's property, the corporation will recognize the basis ($200,000) + the gain recognized by Corley ($300,000) = $500,000. The overall total value of the properties for the corporation is 50,000 + 500,000 = $550,000

[Author]

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