[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).

[HoosierCPA]

@vorobjeva44 no you will not have to memorize all of those. Just work through your study material and it becomes pretty obvious which ones they place the most emphasis on. For the most part the exam MCQ's are fairly straight forward. It's the SIMs that are scary!

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

[Namstut]

@dtatham10, so what's your game plan to prepare for the scary SIMs? 🙂

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

[HoosierCPA]

@namstut I am basically relying on Gleim sims to get me over the hump.

What's your game plan?

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

[demarcon]

@dtatham10

Are Gleim Sims pretty close to what we'll see on exam day? Or does the AICPA decide to combine like 3 Gleim sims into one and say “you should have this done in 15 minutes” lol

[HoosierCPA]

@demarcon it's hard for me to recollect specifics. The last time I sat for REG was July 1st. But based on my vague memory they seem closer then anything I've seen. I've used Ninja, Becker, and Gleim.

You'll get a couple sims that are double click the box and select the correct option (similar to a MCQ) as well as a brief one where it will give you a situation and you have to compute a basis or something (just throwing an example out there). Then there always seems to be a big one where you have to go through multiple tabs and you have to pull the correct data–those are the ones that give me fits. Then most likely a DRS and obviously an AL question.

If you're unlucky you'll have 2 sims that are the multiple tab format. And knowing my luck I'll have 2 of those and some long winded DRS question lol!

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

[HoosierCPA]

Working through a calculate ordinary income SIM on Gleim for schedule k-1 form 1120S.

Why do you breakout rental income separately but rental expenses are combined into ordinary business income?

Here is the question:

Corporation A:
Income items
Gross receipts $100,000
Taxable dividends 2,000
Sec. 1231 gain 8,000
Expense items
Cost of goods sold $60,000
Rent expense 10,000
Charitable contribution 1,000
MACRS depreciation 5,000

Ordinary Income = $25,000 (100-60-10-5)

It seems like this should be netted in box 3 “other net rental income (loss)”

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

[demarcon]

That one confused me for a while too. Rental income is treated separately as a passive income from a rental property, so there's limitations on passive activity losses that have to do with it. Rent expense is a normal business expense that you pay to rent your office. It's not rental expense, it's just rent expense.

[HoosierCPA]

@demarcon…oh duh. Makes complete sense. Thanks!

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

[alialzoubi]

[r_f_94]

Does anyone know how ira rollovers work or effect it effects calculating gross income?

[demarcon]

I think an IRA has to be rolled over within 60 days to another qualifying IRA to not be included in gross income. Taxes are withheld if you receive a rollover directly, so you have to put out your own money to cover the amount of taxes withheld.

If I withdraw $10,000 from my IRA to roll it over into another IRA, they would withhold like 20%. I have to put $2000 of my own money in to cover the full $10,000 or I get taxed on the amount I didn't rollover (plus a penalty).

[HoosierCPA]

@ali no can do. For $200 you can have all the Gleim sims you want ;).

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

[r_f_94]

@demarcon Any idea how that would change AGI calculation?

[demarcon]

If you do roll it over it shouldn't affect AGI, it's a non-taxable transfer. If you rolled it over into a Roth you get taxed on it.

[JMG]

Got some conflicting info here, for Regulation A of the Securities Act of 1933, according to Ninja MCQs it is a registration exemption while Becker says it is not. Who is correct?

[Author]

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