[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

[jonm857]

throw another one at me.

B - 81
A - 87
R - 73
F - July 5th

[Reg_Slayer]

“Debts not discharged under Chap 7,11”

so what is the difference between chap 7, and chap 11?

[luisitotx]

Wow Rogers only has the SIMPLE-PIE:

Standard deduction
Interest on home equity
Medical Exp under 10% AGI
Personal and dep exemption
Local and State income taxes
Employee business expense (misc. 2%)

Private Bond
Incentive stock option
Excess depreciation on personal property

Getting worried now, hoping Rogers is good enough to pass

AUD-82
BEC-Sept 4
REG-TBD
FAR-TBD

[Reg_Slayer]

Contracts and PAL's are 2 adjustments I would maybe add to Roger's mnemonic.

[jonm857]

@reg_slayer

ch. 7 is the liquidation of most debts of an individual, corporation, or a partnership. a trustee is required for ch. 7.

ch 11 is the reorganization of debts of an individual, corporation, or a partnership. there is no liquidation and a trustee is not required.

B - 81
A - 87
R - 73
F - July 5th

[jonm857]

@reg_slayer

tell me the 5 items that do NOT qualify for like kind exchange treatment?

B - 81
A - 87
R - 73
F - July 5th

[Reg_Slayer]

idk, but is the answer the opposite of the E in my hide it mnemonic?

NOT TAXABLE:

Homeowner exclusion (500,000 MJF)
Involuntary exchange (no gain recog)
Divorce property settlement
Exchange of like-kind
Installment sale
Treasury & capital stock

[jonm857]

close. see the first paragraph under like kind exchanges in the text:

1) stocks
2) securities
3) inventory
4) partnership interests
5) real property located in different countries

B - 81
A - 87
R - 73
F - July 5th

[Reg_Slayer]

what chapter is taht?

[jonm857]

ch 4

B - 81
A - 87
R - 73
F - July 5th

[jonm857]

@reg_slayer

Give me another one! NOW!!!

B - 81
A - 87
R - 73
F - July 5th

[Reg_Slayer]

Corporate AMT, adjustments and preferences

(oh yes i did.)

[Anonymous]

The mnemonic for the LKEs that do not qualify is “PRISS” (Per Becker – R4)
P – Partnership Interests
R – Real Property in different countries
I – Inventory
S – Stock
S – Securities

Per NINJA-MCQ, the ff. do not qualify as like-kind items:
1. Real property for personal property
2. Livestock of different sexes
3. Interests in partnerships
4. Real Property in different countries
5. Inventory
6. Stock
7. Securities

Exchange of Like-Kind Business/Investment Assets (tangible)
Key Words to Remember:
Tangibles
Business Trade-Ins
Swapping Real Estate

Timing Requirements
(A) 45 days => to give up the property
(B) Earlier of 180 days or due date of the TP’s ITR (including extensions) => to receive the property

[jonm857]

@reg_slayer

I hate you. I know the acronym. I cannot remember the meaning of each though.

Long term construction contracts??
Interest tax exempt?
Depreciation adjustments??
Municipal tax deduction
O????
L????
Domestic production deduction?
Dividends received deduction???

Private activity bond interest
Percentage depletion???
Post 1987 accelerated deprecation???

Foreign adoption credit

B - 81
A - 87
R - 73
F - July 5th

[Reg_Slayer]

Corporate Adjustments: (LIE or LID)

L – long-term contract income – must be calculated using the % of completion method

I – installment sales of inventory – difference between accrual accounting and the installment method when the installment method was used for regular tax purposes

E – excess depreciation on personal property – 150% declining balance when double- declining balance was used for regular tax purposes

and then it looks like u mixed it in with the ACE ADJUSTMENT (MIND/MOLD)

Municipal (or any tax exempt) interest income
Increase in CSV life insurance
Non SL depreciation
DRD (<20% owners, with 70% deduction)

or

Muni interest income
Organizational expense amortization
Life insurance proceeds on key employees Difference between AMT and ACE depreciation Dividends received deduction (under 20% ownership)

but your PPPreferences look good.

[Author]

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