[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).

[Reg_Slayer]

Since you are using Becker, here is how roger teaches CORPORATE AMT:

TI
+-Adjustments/Preferences (PILE)
= pre-ACE amti
+-ACE adjustment (SLIM)
=Amti before exemption
-exemption
=Amti
*r
=tentative minimum tax
-regular tax
=AMT

PILE (could be + or -)
P – private activity bonds
I – installment sales of inventory [difference between accrual accounting and the installment method when the installment method was used for regular tax purposes]
L – long-term contract income – must be calculated using the % of completion method
E – excess depreciation on personal property (over 150% declining balance if DDB was used)

SLIM
S – seventy-percent dividends-received deduction on dividends from unrelated corporations (80% and 100% DRD do not have to be added back)
LI – life insurance proceeds on the death of a key employee
M – municipal bond interest from all such bonds (except private activity bonds, which were already included in AMTI before the adjusted current earnings (ACE) adjustment)

[CPA788]

Greetings ya'll. Any retakers out there? I need to hit REG for the third time and feeling a little lost on the best way to jump at it.

1st attempt – Becker only. Felt moderately prepared. 69.
2nd attempt – mostly NINJA MCQ and some NINJA notes. Felt super prepared. Got a test from hell. 59.
3rd attempt – not sure if I should hit some notes? Just pound MCQs? I took my test Aug 29 so it's all pretty fresh. Obviously not fresh enough…

Thanks guys.

BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16

CA Candidate

[ARINDAM JAISWAL]

@cpa788 how much did u score while solving questions of becker at home?

[CPA788]

@arindamjaiswal – Well with Becker I never did any final tests – I did all HW and then reviewed by going through where my weak areas were during HW and re-hashing those MCQs. I did those until I got them all right. In NINJA I got to a 75 trending.

BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16

CA Candidate

[ARINDAM JAISWAL]

@cpa788 u should complete one chapter hw then repeat tht chptr after a week with a 1 hr for reading and then doing the hw. If u score above 90 percent it will show tht u remember the concept . I would suggest do each ch atleast for 6 to 8 times only marked questions

[CPA788]

@arindamjaiswal – thank you. I just need to start at chapter 1 and see how well I remember concepts like you mentioned. The worst part of retakes is waiting around weeks and weeks for CA to process applications. I have no idea when I will be able to get a test date and won't know for probably 3 weeks. Worst system ever.

BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16

CA Candidate

[Kewl Dewd]

Hey everyone: I'm taking REG on Oct. 11th. Good luck to everyone – these things are very passable with the right preparation.

[jonm857]

Question about executive compensation deduction…

“A publicly held corporation may not deduct compensation expenses in excess of $1,000,000 paid to the CEO or the four other most highly compensated officers, unless based upon qualifying commissions or a performance based plan on the company.”

I'm trying to understand the wording here. Does this mean that the other four officers in total cannot exceed $1,000,000? Or does this mean that you can deduct up to $1,000,000 paid to each officer?

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

[ARINDAM JAISWAL]

@jonm857 it means two things 1st the maximum commission in amount can be paid $1000000 . The 2nd thing is either pay to one person that isle to the ceo or pay to top four employees of ur co. But then again amount in each case can not go beyond $1000000.

[Reg_Slayer]

@jon

Wiley has it worded like this,

Nondeductible expenses include:
*Compensation in excess of $1,000,000 paid to each of five highest paid executives.

so im thinking it is PER PERSON ?

[jonm857]

@Reg_slayer,

Thanks. I like how Wiley worded that vs. Becker's head-scratcher.

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

[Kewl Dewd]

Anyone have any MNEMONICS are strategies that can help with remembering topics surrounding Holders of Due Course (commercial paper)?

[Reg_Slayer]

can someone explain AMT credits to me?

“The difference between profits on construction contracts computed under the percentage-of-completion method and the completed-contract method for a contractor who uses the completed-contract method for regular tax purposes is an AMT adjustment which is a deferral item.

Generally, deferral items are those preferences and adjustments which can be expected to reverse in future years. When a taxpayer pays AMT that is due to deferral items, he is allowed an AMT credit in succeeding years against his regular tax.”

but then there is nothing about POC or CC in beckers FACCE mnemomic:
Foreign tax
Adoption
Child tax
Contribution to retirement plan
Earned income Credit

also how is AMT credit different than a refundable credit? Also another question suggests “excess deprecition is a deferal item that will result in an AMT credit, but this is not also part of Beckers mnemonic?

[jonm857]

@Kewl Dewd

Definitely know the real defenses that will win against an HDC. Becker uses the “FAIDS” mnemonic.

FRAUD IN THE EXECUTION
FORGERY
ADJUDICATED INSANITY
MATERIAL ALTERATION
INFANCY
ILLEGALITY
DURESS
DISCHARGE IN BANKRUPTCY
SURETYSHIP DEFENSES
STATUTE OF LIMITATIONS

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

[jonm857]

@Reg_Slayer

Regarding your question about AMT credit for future years… I don't think it is included in FACCE because it reduces REGULAR TAX. FACCE credits specifically reduce AMT.

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

[Author]

Replies