[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]

new truck

into serv
November 1, Year 2

cost
$65,000

life
5 years

convention?
150% mid qtr

MACRS factor?
3.75% CORRECT

x2 MACRS depreciation?
=2,438 CORRECT

So the only thing I initially BOTCHED here was that there are different tables depending upon what quarter asset is going into service. Conceptually, can any 1 tell me why that is?

[jonm857]

List 5 items that qualify as a misc. itemized deduction, subject to the 2% AGI limitation.

1.
2.
3.
4.
5.

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

[sonja90]

1.unreimbursed employee exp
2.tax prep fee
3.investment
4.hobby exp
5.union dues

[jonm857]

i'm glad you brought up union dues because those are not incuded in the becker textbook

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

[jpowell31]

@jon i hate those options…you can do things a few different ways, but there's no telling what a SIM will ask. i've seen a SIM allocate expenses two different ways and both were right. but the following amounts that rely on the amount you've entered change accordingly. there are just some reasons i sure wish we didn't have a computerized version of this test.

@reg_slayer there are different tables because if you put majority into use in the fourth quarter, you must use the mid-quarter convention (personal property). i believe based on that same example that you can use different amounts for each item placed into service in their respective quarter, however whereas the general rule is 40% placed into service fourth quarter…kind of contradicting. i'd love some clarification here as well. you'll notice the second part of the sim there's a 50% taken as well, even though the taxpayer has elected to not take bonus depreciation. i scratched my head over this for way too long. and i think it's because it's half-year convention…take it when the property is placed into service and also when it's disposed of.

@jon misc itemized deductions subject to 2% (from memory) unreimbursed business expenses (not moving expenses), uniforms for work, business gifts $25 each, professional subscriptions, training/courses fees for continuing education not to keep job, non-interest investment expense. and a stupid one i remember from one random Ninja MCQ is any fees paid for maintenance/repair (in particular this was street lights on the taxpayers street and NOT including fees to put in street lights to make his neighborhood safe).

[jpowell31]

ahh yes union dues. and looking at my notes, car registration if the based on the value of the car (not the weight…etc.), legal fees to collect alimony, debit card expenses/convenience fee when paying taxes and appraisals to determine casualty losses. you may think this is overkill…..but i'm learning from my mistakes……………….

fees for wills are not deductible

[jonm857]

“decedent” = a person who has died
“descendant” = descending from an ancestor

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

[sonja90]

safe deposit box is also subject to 2%AGI

[Reg_Slayer]

per Roger:
“BIT”
Business Expense(unreimbursed)
Investment Cost
Tax Prep/Legal

per @Cassandra W
“BEBE U BEST”
Business gifts
Educational expenses
Business use of home
Employment agency fees
Uniforms
Business expense–unreimbursed
Expenses of investors
Subscriptions to professional journals
Tax preparation fee

[r_f_94]

how much do we need to know about estates and trusts? there are only 54 questions in becker that are pretty straight forward but the sims blow me away. this section makes me pretty nervous on what might appear on the actual exam.

[jpowell31]

how do i turn off the notifications to email? i think i clicked it by accident at some point and now i cant get them to turn off and they're going to my work email which is being monitored while i'm out lol. the box below this box is unchecked…

[jonm857]

@jp

so you're too cool for us now, huh? 🙁

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

[jpowell31]

no! i just have the browser open with this thread anyway, i don't need an email notification, i'm checking periodically so rather it not clog up my work emails lol

[Anonymous]

Yes I would like to know how to unsubscribe as well if someone can help out. I un-clicked the “subscribe” button at the top of the page (next to Favorite), and there is literally no “subscribed” topics under my username (in the profile page), but still I'm flooded with emails notification.
What I did is emailed another71 support hoping they could something about this…

In the meanwhile – I have a quick question:

Can someone tell me about the valid offer vs a firm offer something like that. I remember reading somewhere that in a contract, you don't need price but you need to specify quantities. In a deed, price is not required but a description of the subject matter is. And then there is “valid offer” where price is required. I think I'm confused….

[jpowell31]

@ji i just came across the same thing and it has me annoyed. it was obvious because it was the only one that could be right (price) as other items were clearly stated and yet an open price is fine (not open acceptance) for other problems as it can be assumed that a price will be determined on a reasonable basis a the time of the sale..
i can't find any notes on it and failed to write the questions down, though so aside from knowing based on trial and error i do not fully understand this either.
________

Omega Corp. owned a factory that was encumbered by a mortgage securing Omega’s note to Eagle Bank. Omega sold the factory to Spear, Inc., which assumed the mortgage note. Later, Spear defaulted on the note, which had an outstanding balance of $15, 000. To recover the outstanding balance, Eagle:
A.
may sue Spear only after suing Omega.
B.
may sue either Spear or Omega.
C.
must sue both Spear and Omega.
D.
must sue Spear first and then proceed against Omega for any deficiency.

[Author]

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