[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]

excess fringe benefits = wages, salaries, tips, etc… on w-2.

[Anonymous]

I have done the exam today and think I failed lol 🙁 I got a 73 last time. I am not sure if the questions were hard cause I was doing well or cause I was doing bad. I dont think I had ethics or business law questions more then 10, the exam was all tax. I want to get this exam out of the way before 2017 changes.

Anyways good luck to everyone and definitely review individual tax before the exam.

[sonja90]

@cpamaster fingers crossed that you passed 🙂

[Reg_Slayer]

tax benefit rule?

SD last yr = don’t include a refund as income
itemized last yr = ALMOST ALWAYS include a refund as income, because commiT

[jonm857]

@cpamaster

I'm sure you did fine. Thanks for the heads up.

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

[jonm857]

@reg_slayer

Yeah, that looks right

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

[jonm857]

Can somebody explain amortizing bond premiums & discounts and how that ties into taxable interest for individuals… in English please?

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

[Reg_Slayer]

Sch b,c,d,e,f
Wages
Alimony RECEIVED
Tax refunds (state/local)
IRA distributions
S.S. received
Unemployment received
Pension/Annuities received

@jon

probably creates a diff of TI vs BI? what chapter is this?

[jonm857]

@reg_slayer

Ch. 1

Pg. R1-22

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

[sonja90]

from my work experience original issue discount is taxable same as interest on 1040. Reported on 1099-OID

[jpowell31]

@cpamaster, you probably did well. i KNOW my questions didn't get harder. and i knew i failed last time…and i did! SIMs killed me as well, though.


@reg_slayer yes that's right. further, income to include = lesser of the amount itemized deduction over standard deduction OR lesser of the standard deduction on that return or the amount of state taxes paid.

@jon – i just know you have to amortize the premium using the constant yield to maturity method and offset that amortized amount with the interest received on the bond to maturity. i've not seen any calc examples, though.

[Reg_Slayer]

I bought my bond at a prem, so when I get an interest payment, not all of the amount recieved counts as INCOME. Some of it will be used to reduce the premium/basis of the bond [amortization].

So this amount that is not income, is not taxable?

Not highlighted by Becker, so probably overkill.

[Anonymous]

Make sure you guys practice the new sim ‘DRS'

[jpowell31]

@cpamaster. i got one on my last test and i still don't know how to do it….not the format/type of question but what was in it. and the zooming function on the backup you have to review to answer the questions is so time-consuming and annoying.

[jonm857]

I am working on a master-file of all the items included/excluded from gross income (Ch. 1) in a nice, organized format. It will be done in a couple hours and I'll be willing to share on google drive if anybody is interested.

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

[Author]

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