[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for REG.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

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

[Sticky Nicky]

Re2pect….how do u like Roger for REG? I just started,,,I'm almost through Individual,,,seems like a lot of crap to remember

[mtaylo24]

@Re2pect, I'm not gonna say that I didn't recognize anything, but every stupid question had a kicker to it! The examineers are getting more and more creative. I probably flagged 2 on the first testlet, 3 on the second, and 3 on the third and all of those questions have been on my mind since yesterday.

For screen shots, I usually upload to imgur.com, then paste the link of the image using the “img” function above.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Claudia408]

Can someone please help with this question? My understanding is that a Corporation in complete liquidation can recognize gain AND losses, but the answer to part of this SIM says only gain can be recognized. Am I mistaken or am I missing something?

Pamela's basis for her Plumtree stock is $8,000 and owns 10% in Plumtree Corp. Plumtree has accumulated earnings and profits of $30,000 and the following assets:

Asset Adjusted basis Fair market value
Equipment 15,000 10,000

Plumtree adopts a plan of complete liquidation and distributes the equipment to Pamela in complete cancellation of all of the shareholders' stock. What amount of loss will be recognized by Plumtree on the liquidating distribution of equipment to Pamela? Answer: 0

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[539Mayor]

@Claudia408

I went back to my college textbook. Southwestern Como Tax 2010. Did u paste in the whole question? I'm looking for dates that will eliminate any loss or a related party transaction. Let me know own I'm interested in figuring this out.

[539Mayor]

Anyone from PA Chester County studing?

[RE2PECT]

@Sticky Nicky- I thought he did a good job with REG. I got through all the videos and reading the book in a little under 2 weeks. It's a ton of information and I've seen people on here say that he doesn't cover everything so that has me a little worried. His mcq's are pretty tough for REG imo. I know everyone says his tb is too easy, but I was getting crushed on them in the beginning.

@mtaylo24- That's how I felt with BEC. Their questions threw in different variables that I never saw. They must go through all the tb's and decided to mess with us and throw stuff at us that they know we haven't seen before.

Here's what I was talking about before. Ninja says that violations of rule 10b-5 don't result in rescissions of the transaction, but Roger says it can.

View post on imgur.com

View post on imgur.com

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[Sticky Nicky]

Respect…i catch alot of these contradictions across materials..i found like 3 or 4 when i was studying for audit,,,if i find them i would just look up the code since its the real source

As im just starting to get into the meat of this topic I feel like it would be easier and more time efficient to just go through the forms and schedules line by line and nail down each one,,,what do you guys think?

[Claudia408]

@jcberthoud – it's a long one but here is everything:
Oak Corporation owns 80 percent of the stock of Plumtree Corporation, with the remaining 20% owned 10% each by Michael and Pamela, two unrelated individuals. Oak's basis in its Plumtree stock is $35,000; Michael's basis in his Plumtree stock is $7,000; and Pamela's basis for her Plumtree stock is $8,000. Plumtree has accumulated earnings and profits of $30,000 and the following assets:

Asset Adjusted basis Fair market value
Inventory $ 3,500 $10,000
Equipment 15,000 10,000
Land 45,000 80,000
Plumtree adopts a plan of complete liquidation and distributes the inventory to Michael, the equipment to Pamela, and the land to Oak Corporation in complete cancellation of all of the shareholders' stock. What amount of loss will be recognized by Plumtree on the liquidating distribution of equipment to Pamela? Answer: Although a liquidating corporation must recognize gain on the distribution of appreciated property to minority shareholders in a Sec.332 liquidation, no loss can be recognized.

I don't understand the Sec332 part, that might have something to do with it?

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[aatoural]

The section number you don't need to memorize it or know is that section. All you needed to get from the facts is if the property distributed had a FMV > NBV (appreciated property), if so the Corp. recognizes a gain in the transfer to Pamela, but since it was not appreciated property (FMV < NBV) loss is not recognized.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Claudia408]

@aatoural – i agree, but since the Corp is in complete liquidation, i think loss should be recognized. Is that incorrect?

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[aatoural]

I think the trick is with the Oak Corp having a controlling interest in Plumtree. But I am still a bit confused with the question. Maybe somebody can give us a better explanation.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Sticky Nicky]

this section is an absolute nightmare,,,cant even get through individual tax,,3 days on this

[aatoural]

Thats how I felt about AUD.

My nightmares with this section are that they are going to test me on those exceptions to the exception that nobody looks at. Since this is my first try at REG Im so scared of the SIMS. I also hate that chapter 8 from Becker, it is just like they want to add more random information so your brain explodes.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[hasy]

I came here to echo the hatred. Test is in 27 days and I hate the exceptions on exceptions on w.e random rule they throw at you…. >.< Moving on to Business Law but I have to keep refreshing tax. Roll eyes.

Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved - Helen Keller

-

BEC 80 (10/23/15)
FAR 72 (4/2/15); 83 (7/11/16)
REG 52 (4/28/15)
AUD (9/9/16)

Roger + NINJA MCQ + WTB

[HoosierCPA]

Definitely one of those evenings where I can't seem to get any questions right.

I just had a question on alternative valuation method. At the time of death the value was lower then it was 6 months later (Alt Val Date). It asked what was the basis. I chose the Alt Val date amount since it was an increased value. I swear in prior questions you want the higher basis that way when you go to sell the asset you show a smaller gain–am I making this up?

Here is the explanation-

“In order to select the alternate valuation date of July 3, the valuation must be lower, resulting in reduced estate tax liability. Since the market value has risen, the value at time of death ($7,200,000) must be selected.”

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[Author]

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