[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

[Anonymous]

10% is a penalty for early withdraw for anyone under the age of 59.5

[Anonymous]

You can withdraw before if it was for medicare over 7.5% of AGI and for education. You would includ it in gross income but there is no penalty.

Btw it i not partnerships, its individual tax

[jpowell31]

i'm sure there's a better explanation for this but your effective tax rate is the rate actually used if you were to divide your taxes into your taxable income. the marginal rate is what you use to determine your next/estimated payment…
10% is the penalty charge for withdrawing from the IRA before retirement (some exceptions exist)

[Porma Fierles]

Oh right lol, I was personally thinking about jpowell's question. Yes it is D of course.

[jpowell31]

Which of the following items is not listed on Schedule K, Form 1120S, as a separately stated item?
A. Net income from rental real estate
B. Royalty income
C. Pension expense
D. Interest expense related to portfolio income

[Reg_Slayer]

@jp

D because on 1099 int?

[Porma Fierles]

A

[jpowell31]

nope it's actually C). pension and profit sharing related expenses are attributable to scorp income

[sonja90]

@jpowel C

[jpowell31]

The CSU partnership distributed to each partner cash of $4,000, inventory with a basis of $4,000 and a fair market value (FMV) of $6,000, and land with an adjusted basis of $5,000 and an FMV of $3,000 in a liquidating distribution. Partner Chang had an outside basis in Chang's partnership interest of $12,000. In the second year after receiving the liquidating distribution, Chang sold the inventory for $5,000 and the land for $3,000. What income must Chang report upon the sale of these assets?
A. $0 gain or loss
B. $0 ordinary gain and $1,000 capital loss
C. $1,000 ordinary gain and $1,000 capital loss
D. $1,000 ordinary gain and $0 capital loss

[sonja90]

@porma use k-1 for 1120s it helps all of the things bellow box 1 are not part of separately stated items

https://www.irs.gov/pub/irs-pdf/f1120ssk.pdf

[sonja90]

Curry's adjusted basis in Vantage Partnership was $5,000 at the time he received a nonliquidating distribution of land. The land had an adjusted basis of $6,000 and a fair market value of $9,000 to Vantage. What was the amount of Curry's basis in the land?

A.
$9,000

B.
$6,000

C.
$5,000

D.
$1,000

[jpowell31]

@sonja C

[Reg_Slayer]

FYI:

no deduction is allowed for premiums on any life insurance policy if the taxpayer is directly or indirectly a beneficiary under the policy.

[Porma Fierles]

Thanks. I will come back to the forum later, I am trying to get my individual tax section score to 85. I am close, but close isn't enough here. Until later.

[Author]

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