[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).

[Namstut]

@debitcash
Appreciated property is deducted at FMV.

General property – lesser of basis or FMV.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[HoosierCPA]

namstut…thank you for the clarification on the installments…that helps a lot! And also, thank you for all the help in general!

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

[Namstut]

@dtatham10 you are welcome!! I am actually learning too, it's a good way to reinforce the info!

When is your test?

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[HoosierCPA]

@namstut the 9th. I'm going to TRY (key word there) to get 5-8 hours a day till test day. When are you taking the exam? Is this the first exam you've sat for?

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

[gigabyte2001]

Guess it's time to start studying for REG. Test date plan is 3/6 (already scheduled) this will hopefully be the very last test I take 🙂

My background was originally in Tax, I worked in Public doing Tax & Small Business bookkeeping for 5 years, got my MTAX 12 years ago and have been in Industry for almost 11 years now. So I'm probably a little rusty on my tax stuff and this stuff does change from time to time.

B - 11/11/16
A - 4/16/16 87!!
R - 2/17/17
F - 7/26/16 - Waiting for 8/23

[Namstut]

@dtatham10 mine is on the 8th!

This is my 3rd, I passed AUD and BEC. Planning on taking FAR in March'17.

With work I can't put in more than 4-5 hours in the evenings. I am not ready at all but maybe another 40-50 hours will make a difference. 😉

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[HoosierCPA]

Congrats on passing AUD and BEC! And yeah I know how you feel with work–that's been my life for basically the entire study process. My wife and I just had a baby on the 15th and I took advantage of the FMLA for my study purposes ;). However, I don't get as much studying done as I had envisioned, having under a year and a couple weeks it pretty stressful! haha

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

[benboccio]

Magic Corp., a regular C corporation, elected S corporation status at the beginning of the Year 3 calendar year. It had an asset with a basis of $40,000 and a fair market value (FMV) of $85,000 on January 1, Year 6. The asset was sold during Year 6 for $95,000. Magic's corporate tax rate was 35%. What was Magic's tax liability as a result of the sale?

A.
$0
B.
$3,500
C.
$15,750
D.
$19,250

Generally an S corporation is not subject to income tax. The company's taxable income or loss flows through to the shareholders and is reported on their individual income tax returns. One exception to this is the built-in gains tax. When a regular C corporation converts to S corporation status, a tax may be imposed on the net appreciation of the assets owned at the time of conversion if they are sold within five years. The built-in gains tax is at the highest corporate tax rate.

I guess we are supposed to assume that the asset is owned at time of conversion (in year 3) despite the problem saying this ” It had an asset with a basis of $40,000 and a fair market value (FMV) of $85,000 on January 1, Year 6.”

[Namstut]

@dtatham10 thanks!!

And congrats on the new baby!! Oh yeah, with kids you can plan all you want but your study time is still limited to when they are sleeping! But you are almost there and then you will be able to take naps with them!

@gigabite2001 – happy studying to you!

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[HoosierCPA]

@benjamin wording can get tricky, and I am as guilty as anyone into over analyzing questions. I would just say the “HAD” would imply that the basis was 40k at the time of the conversion–it doesn't mean they got rid of the assets. After the conversion and after being taxed on the built-in gain the basis becomes 85k — and from that regard it would make sense that it “HAD” a basis of 40k because the basis is no longer 40k it's 85k.

Hope that helps.

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

[HoosierCPA]

@namstut thanks, yeah 1 didn't seem to bad but when you have the 2nd baby it almost seems like the stars have to align perfectly for both of them to take naps at the same time! lol. My wife has been a huge help though and I keep telling her if she can bare this 2 week stretch without me helping much it will be much better then me failing and having to study for another month or 2!

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

[HoosierCPA]

First question of my night session and here I am!:

Which of the following is not a required element of a “fraudulent transfer” under the Bankruptcy Code?

A.The transaction must have occurred within two years of the date of bankruptcy.

B.The purchaser must have been aware of the insolvency of the transferor. — CORRECT

C.The asset must have been transferred for less than fair value.

D.The transferor must have been insolvent at the time of the transfer.

B makes sense to me but it was a 50/50 toss-up for me between B and D. You are not required to be insolvent to declare bankruptcy so why “must” the transfer be done while you are insolvent?

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

[mfbc23]

Need advice.

I took REG (a retake) this month and got a failing score on the 11/22/16 score release. I had already scheduled BEC for early January, but I was only on the first chapter. If I do not pass both exams by 2/24/17 my AUD score will expire.

Should I retake REG in January and move my BEC for mid February? Or should I keep BEC for January and try retaking REG last?

Thanks in advance for the advice.

AUD: 83 (Aug. 2015)
FAR: 78 (Nov. 2015)
REG: TBA
BEC: TBA

[Anonymous]

Take REG first since the info is still fresh.

[mfbc23]

Thank you @Amor D

AUD: 83 (Aug. 2015)
FAR: 78 (Nov. 2015)
REG: TBA
BEC: TBA

[Author]

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