[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]

https://www.section179.org/section_179_deduction.html

[jpowell31]

ok i'm probably overthinking it.. i think every reference to first year just means the first year the property is placed into service. such an unnecessary thing to worry about! lol

it's also new and used equipment put into service during the year.

[jpowell31]

sorry, LAST thing – it'S $2,010,000 not $2M right?? i know that changed, but that website (and Ninja audio i think) still has $2M and now i'm confused.

[sonja90]

I meant new to you 🙂 it's 2M for year end 2016. don't overthink it! sec 179 is really simple. 500,000 expense up to 2M after that phase out dollar for dollar.

1st deduct sec 179
2nd deduct bonus dep
3rd deduct MACRS

[sonja90]

that shit that they are mentioning 10,000 that should be adjustment for inflation if it stays at 2M in law but they are going back an forth with it. so just stick with 2m for exam purpose

[Reg_Slayer]

@jpowell31

per 2016 becker
500k maximum 179, reduced by amount into service excess of $2,010,000

[Reg_Slayer]

any1 have mnemonics/ ways to remeber m-1 reconciliation items?

[jpowell31]

sons of beez. this is something i've memorized for ages now. why'd i start with this ish.

[jonm857]

me stressing out right now…

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

[jonm857]

flip flopping between MCQs/Sims and book reading/taking notes for an hour a piece.

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

[jpowell31]

sonja where are you sitting your exam? you sit tomorrow or next week?

[jonm857]

note: when determining “earned compensation” for IRA contributions deductibility, alimony received is included in “earned compensation”.

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

[jpowell31]

let's mix it up and get some MCQ out there:

Gray Corp. had taxable income of $100,000 before capital gains for Year 6. Here is a history of the corporate capital gain transactions:

Year 1 $ 10,000 Year 4 $ 8,000
Year 2 $ 3,000 Year 5 $(40,000)
Year 3 $ 0 Year 6 $ 20,000

What is Gray Corp.'s Year 6 taxable income including capital gains and what M-1 adjustment, if any, will Gray Corp. report on its corporate income tax return?

A.

Taxable income: $80,000; M-1 adjustment: $40,000
B.

Taxable income: $100,000; M-1 adjustment: $20,000
C.

Taxable income: $101,000; M-1 adjustment: $19,000
D.

Taxable income: $120,000; M-1 adjustment: $0

[sonja90]

I'm sitting on Monday Jacksonville Florida. If this storm does not wipe off prometrics by Monday 🙂

[jonm857]

answer: no idea. can you post the solution please?

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

[Author]

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