[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]

that is brutal. it will take a minute to memorize that to the “t”

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

[Reg_Slayer]

i have all these old notes from 2 many sources and need look up what the most current becker mnemoncis are.

[jonm857]

ch 4…

tell me how to determine the basis the donee should use in a related party transaction when the FMV < donor's rollover cost basis

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

[Reg_Slayer]

use FMV since it is lower? still zoned in on individual taxation for now.

[jonm857]

generally he can use the donor's rollover cost basis to determine a gain or loss. if the fmv < donating relative's cost basis at the time of the transaction, the donee relative has to use this formula instead to determine the basis used for gain or loss:

——————————-Sell higher, use donor's basis to determine gain
Donor's rollover basis
——————————-Sell between, no gain or loss
Lower FMV at date of related party transaction
——————————-Sell lower, use lower FMV as basis to determine loss

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

[jonm857]

hit me another one from individual tax

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

[Reg_Slayer]

AMT credits?

I still dont really undertand how they differ from normal (refundable vs nonrefundable) credits.

[jonm857]

FACCE

Foreign tax credit
Adoption credit
Child tax credit?
Contribution to retirement plan credit??
Earned income credit?

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

[Reg_Slayer]

yea, but how/when apply that. I have never run into a question asking me to do so.

[Anonymous]

Refundable Credits:
5 [CASHEW]
C – Child Tax Credit (refund is limited)
A – AOC => American Opportunity Credit (40% Refundable)
S – SS => Excess SS Paid
H – Hope Scholarship Credit Portions [Old name for AOC]
E – EIC => Earned Income Credit
W – W-2 => Withholding Taxes

Nonrefundable Credits: (8) GRACEFUL
G – General Business Credit
R – Retirement Plan Contribution Credit
A – Adoption Credit
C – Child & Dependent Care Credit
E – Elderly or Disabled Credit
F – Foreign Tax Credit
U – Long-term Unused Minimum Tax Credit
L – Lifetime Learning Credit

[Reg_Slayer]

is HIPPE above or below the line?

[jonm857]

@reg_slayer

I don't believe there is a question that will ask you to apply them in becker. Look at the formula on pg 45, ch. 1. The tax credits are only coming into play after all the adjustments, preferences and the exemption are taken care of.

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

[jonm857]

@reg_slayer

I really despise the HIPPE acronym because some of it is below and some is above.

“HI” are below the line (itemized deductions on Schedule A)
“P” is not deductible ever.
“PE” is above the line to arrive at AGI. The “P” I'm guessing will be manifested as interest expense on Schedule C probably.

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

[jonm857]

@Amor D

Where are your acronyms from?

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

[Anonymous]

I originated it using WordSolver.

[Author]

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