REG Study Group Q4 2014 - Page 96

Viewing 15 replies - 1,426 through 1,440 (of 4,354 total)
1 2 3 … 95 96 97 … 289 290 291
  • Author
    Replies
  • November 12, 2014 at 1:04 am #630599
    Mamabear
    Member

    @wannabe–it is for 2 generations below that of the transferor. So passing stuff down, not up.

    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!!

    November 12, 2014 at 1:05 am #630600
    Tax lady
    Participant

    YAAAAY! And thanks guys for the help. I will certainly be back for you guys.

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

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

    November 12, 2014 at 1:05 am #630601
    WANNABE_CPA
    Member

    i thought it is generation skipping tax which is for sure other way around when granparents gift grandchildren…i thought might be this way too…But i suppose i am wrong

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

    November 12, 2014 at 1:05 am #630602
    Anonymous
    Inactive

    This one tripped me up, but I just realized that I read the question wrong.

    November 12, 2014 at 1:05 am #630603
    Mamabear
    Member

    Bucky–B

    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!!

    November 12, 2014 at 1:06 am #630604
    Tax lady
    Participant

    @bucky B

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

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

    November 12, 2014 at 1:07 am #630605
    Anonymous
    Inactive

    B is right!

    November 12, 2014 at 1:07 am #630606
    Anonymous
    Inactive

    Venus owns 30 percent of a corporation. Serena owns 30 percent of a different corporation. Both of these corporations reported operating income this year (sales minus cost of goods sold and other operating expenses) of $200,000. Both corporations made a total cash distribution to the owners of $80,000. The company that Venus owns an interest in is a C corporation. The company that Serena owns an interest in is an S corporation. Which of the following statements is true?

    A Serena will report $36,000 more in taxable income this year from this ownership than Venus will report.

    B Serena will report $60,000 more in taxable income this year from this ownership than Venus will report.

    C Serena and Venus will report the same amount of taxable income this year from their ownership.

    D Venus will report $24,000 more in taxable income this year from this ownership than Serena will report.

    November 12, 2014 at 1:07 am #630607
    Anonymous
    Inactive

    Can someone please summarize these 4 ponts for me in terms of recognizing gains/losses?? I feel like I'm always messing them up in m/c and I just want to fully understand this going into my exam on Thursday.

    1) Non-liquidating distribution – Corps

    2) Liquidating distribution – Corps

    3) Non-liquidating distribution – Partnerships

    4) Liquidating distribution – Partnerships

    Thank you!

    November 12, 2014 at 1:07 am #630608
    Mamabear
    Member

    @wannabe–The Wiley explanation says: The generation-skipping transfer tax is imposed as a separate tax in addition to the federal gift and estate taxes, and is designed to prevent an individual from escaping an entire generation of gift and estate taxes by transferring property to a person that is 2 or more generations below that of the transferor. The tax is imposed at the highest tax rate (40% for 2013) under the transfer tax rate schedule.

    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!!

    November 12, 2014 at 1:09 am #630609
    Tax lady
    Participant

    @bucky C

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

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

    November 12, 2014 at 1:10 am #630610
    Mamabear
    Member

    Bucky-A

    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!!

    November 12, 2014 at 1:11 am #630611
    Mamabear
    Member

    @Cpaoneday–I would love that breakdown too. They confuse the mess out of me as well.

    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!!

    November 12, 2014 at 1:12 am #630612
    Anonymous
    Inactive

    A is correct – Most corporations are C corporations. They pay an income tax on their own taxable income and owners are only taxed when dividends are distributed. Venus owns part of a C corporation so that she must report dividend income this year of $24,000 ($80,000 distribution times 30 percent ownership. Some companies qualify as S corporations. They pay no income taxes but allocate pass through items and ordinary income to their partners. Serena will report $60,000 based on her ownership of this S corporation ($200,000 ordinary income times 30 percent ownership). SerenaΒ’s taxable income is $36,000 higher than that of Venus ($60,000 less $24,000).

    November 12, 2014 at 1:12 am #630613
    WANNABE_CPA
    Member

    Bucky…No idea

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

  • Author
    Replies
Viewing 15 replies - 1,426 through 1,440 (of 4,354 total)
1 2 3 … 95 96 97 … 289 290 291
  • The topic ‘REG Study Group Q4 2014 - Page 96’ is closed to new replies.