[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]

I scored “comparable” across the board for the tax categories, and scored “stronger” for the b-law categories. It's the sims that killed me, so my suggestion is to not neglect the Sims. Master them. People say that it hardly makes a difference if you practice Sims, but I call “bull$hit” on that. If I had hit the Sims harder in Becker last time, I fully believe I would've passed.

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

[Anonymous]

@porma C 🙁 I got that wrong too

[Porma Fierles]

Noooooooo! For what reason? The MCQ I have practiced all involve applying a DRD amount, but not here?!

[Porma Fierles]

BTW @sonja I just got a practice mcq about how many years for a nonresidential property do you depreciate, so the info you posted was helpful

[jpowell31]

@cpamaster can you share the reasoning..i just want to make sure i'm understanding.

[sonja90]

@john i feel your pain I failed aud twice because of the sims. and second time around i did practice sims more but the thing is they throw stuff at me that i've never seen and AL did not help shit. Gosh can;t wait to be done with this nightmare

[Anonymous]

The requirement is to determine the ‘NOL' for 2016 given that deductions in the tax return exceed gross income by $75,000. In computing the NOL for 2016, the DRD of $6,600 would be fully allowed, but the $13,400 NOL deduction (carryover from 2015) would not be allowed. $75,000 — $13,400 = $61,600.

I still dont fully understand it too. But thats Wiley's explanation

[Anonymous]

Maybe since the deduction exceeds grows income there is nothing to deduct? Since DRD is to reduce the dividend income? Not sure tho…

[Porma Fierles]

I do not understand what they mean by allowed here @cpamaster

[jpowell31]

ohh it's because it was already reported in the prior year's tax return. it's carried forward but not taken currently as there's no income to offset it against.

EDIT: the DRD is allowed in getting taxable income…it's confusing because you would normally add back taxable income to determine things that are subject to an AGI threshold as the DRD is taken FROM AGI.

[jpowell31]

tahl, an individual, owns 100% of Talon, an S corporation. At the beginning of the year, Stahl's basis in Talon was $65,000. Talon reported the following items from operations during the current year:

Ordinary loss $10,000
Municipal interest income 6,000
Long-term capital gain 4,000
Short-term capital loss 9,000

What was Stahl's basis in Talon at year-end?
A. $50,000
B. $55,000
C. $56,000
D. $61,000

[Porma Fierles]

Uhh, C. By the way

A 33-year-old taxpayer withdrew $30,000 (pretax) from a traditional IRA. The taxpayer has a 33% effective tax rate and a 35% marginal tax rate. What is the total tax liability associated with the withdrawal?

A.
$10,000

B.
$10,500

C.
$13,000

D.
$13,500

ANSWER-The first sentence's word before the $$ amount's 5th letter.

[jpowell31]

D). 35% * 30k + 10% penalty * 30k.

[Anonymous]

Whats the difference between marginal and effective tax rate?

[Porma Fierles]

I am not good at partnerships yet. Why are the 35% and 10% rates used?

[Author]

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