[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

[sonja90]

[sonja90]

[jonm857]

click the “img” button right on top of the box and paste the link there

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

[Reg_Slayer]

[jonm857]

Here we go with the mom and pop rule… Gotta love this $hit

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

[Reg_Slayer]

50% of agi over 150 reduced by..?…?

something like that, pls refresh my memory.

why is it even called mom and pop rule, i never picked up on that.

[jonm857]

I've wondered that too.

passive losses (i.e., rental losses) can offset ordinary income up to $25,000 to the extent the taxpayer materially participates in the passive activity. (there is another requirement I think, I'm not there in the book just yet).

the deduction is completely phased out if AGI > $150,000

the deduction is phased out between AGI of $100,000 and $150,000

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

[jpowell31]

i've written all these little nuggets down on a convenient page today because they're easy to get confused with one another with the phase-outs and limits (50%/25%/each $1k…over $75k/150K…etc.)

i think it's mom and pop because it was originally for small business owners.. we usually see the example now in an actively managed rental property but i think it can apply if you've got a small business on the side. like a shop/restaurant that you materially participate in.

and yep it's $25k passive loss allowed reduced by 50% of AGI in excess of $100k

[sonja90]

just realized @john and I have same exam date 🙂 Mine is at 11:45 am

[jonm857]

Nice… mine is at 1:30.

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

[Reg_Slayer]

IRC 123 (a) (1)
IRC SECTION (SUBSECTION) (PARAGRAPH)

sometimes i feel practicing navigating the IRC by category can be more useful than using the needle in a haystack search feature.

[jpowell31]

i'll be checking in on you guys for sure. i'm sitting this friday!! then back to FAR come Monday. HOORAY said NO ONE EVER.

[jonm857]

@jpowell

The FAR study group is really slacking. When we get there, we'll wake them up.

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

[jpowell31]

absolutely. i'm trying to sit a week before you are planning to again. but i'm starting from scratch and have a lot going on at work including travel so i'm a bit nervous. it's worth a shot though!

[Porma Fierles]

I have 9 days left and I'll be honest, all of these tax rules intimidate me. Just when I get individual, I do not get entities.

[Author]

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