[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

[Reg_Slayer]

all Qualified dividends are also ordinary.
but not all ordinary dividends are also qualified.

[jpowell31]

here's a detailed mother:

The personal service partnership of Allen, Baker & Carr had the following cash-basis balance sheet at December 31, Year 1:

Adjusted Basis Market
Assets per Books Value
Cash $102,000 $102,000
Unrealized accounts receivable — 420,000
Totals $102,000 $522,000

Liability and Capital
Note payable $ 60,000 $ 60,000
Allen, capital 14,000 154,000
Baker, capital 14,000 154,000
Carr, capital 14,000 154,000
Totals $102,000 $522,000

Carr, an equal partner, sold his partnership interest to Dole, an outsider, for $154,000 cash on January 1, Year 2. In addition, Dole assumed Carr’s share of the partnership’s liability.

What amount of ordinary income should Carr report in his Year 2 income tax return on the sale of his part­nership interest?

A.

$0
B.

$20,000
C.

$34,000
D.

$140,000

[jpowell31]

it is a ninja question

[sonja90]

it's D for last one

[jpowell31]

correct. ok i'm going to grab some dinner and head home. will likely log back on later but will be trying to focus on my notes otherwise. 15 hour days, coming right up!

[jonm857]

@jpowell

I'm gonna destroy some tax notes tonight also.

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

[Reg_Slayer]

@jonm857

can u name all of the early withdrawl penalty exceptions?

[jonm857]

Himdead

1st time homebuyer
Insurance medical?
Medical expenses??
Disability
Education
And
Death

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

[Reg_Slayer]

home purchase (1st time) ($10,000 max is penaly-free, must make purch w/in 120 days)
insurance (medical, for the unemployed),
medical expenses (excess of 10% AGI)
disability
education expenses
and
death.

[jonm857]

can you tell me the 4 types of gifts that have an unlimited exclusion from the gift tax

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

[Reg_Slayer]

( not from memory )

4 types of gifts that have an unlimited exclusion from the gift tax:

1. Payments made directly to an educational institution.
2. Payments made directly to a health care provider for medical care.
3. Charitable gifts.
4. Marital deduction (must be a terminable interest).

[jonm857]

the charitable gifts one is the one I always forget.

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

[Reg_Slayer]

what is a marital deduction ? why is it considered a “gift” ?

[jonm857]

like if you gave $1,000,000 to your wife/husband… I think it applies if you give your wife/husband property too

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

[Reg_Slayer]

ah so is there actually a deduction? or does the gift just not count. Like if i give my wife a car, i dont have to do/report anything ?

[Author]

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