[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).

[The.Underdog]

Bout to dive into the Ninja Notes for the first time. Got done with the material today/. One Month!

FAR - 86
AUD - 93
REG - 8/31/16
BEC -84

[The.Underdog]

How is important to memorize these $ amounts for Tax Brackets. Ninja Notes starts out with them first.

FAR - 86
AUD - 93
REG - 8/31/16
BEC -84

[Reg_Slayer]

@Underdog, I would just use them for reference. Becker says don't worry about the specific $ amounts.

[Anonymous]

Hey guys hope the studying is going well 🙂

Does anyone know where I can practice a Farming TBS?

[aatoural]

I found this mnemonic for the 1040 for those of us that use them. I hink you'll find the one for adjustments a bit catchy ROFL 🙂

https://www.another71.com/cpa-exam-forum/topic/reg-1040-mnemonics/

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[jonm857]

I'm not a fan of Becker's gain/loss recognized for like kind exchanges.

When you're calculating the recognized gain, you have to net the relief from liabilities and compare it to the realized gain to find out which one is less.

But you should not net other types of boot received with boot paid? For example, I paid cash of $1,000 and I was relieved of a liability of $2,000 in the same transaction. Yet, we don't net these? This is kind of confusing.

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

[jonm857]

I'm looking at Section 179 expense in Becker and need some help clarifying just what it is.

Regular depreciation and Section 179 expense are completely different things, right? You can deduct both on the tax return, right? It doesn't have to be one or the other… right?

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

[Reg_Slayer]

@jon

its been awhile since I have worked those questions, but i think the emphasis is on boot RECEIVED, not boot PAID…?

[Reg_Slayer]

SECTION 179 creates a [?temporary?] difference between tax depreciation and book depreciation, because the amount we can depreciate on qualifying “tangible personal property placed in service” is limited by the IRS:

[500,000 MAX, 539,000 [if ENTERPRISE ZONE PROP]. {{REDUCED BY ANY amount OVER 2,010,000)]

any excess can be carried fwd indefinitely.

CARRYFWDS FOR INDIVIDUALS:
nol [back 2, fwd 20]
investment expense > income [4ever]
cap loss [3k/yr, remainder indefinitely]
EXCESS 179 [of 500 max]
charitable contributions [5 yrs]
amt paid [4ever, against regular income tax only]
pal [4ever]

[jpowell31]

section 179 is only for personal tangible property, you'd take the 179 deduction first, then bonus depreciation (50%) then MACRS.

for like-kind I need to do my own review (reading the last chapter of becker now before hammering into concepts & doing MCQ for the next 2 weeks before my exams) but I agree becker made me more confused. I used on Ninja and was happy with my understanding before. I THINK the rule is that if you are RELIEVED of a liability(mortgage) and that relief is MORE than the liability (mortgage) being assumed, I think you ignore it when determining gain…which would mean this is unique? let me know if the example you saw this would make sense.

[jonm857]

When are you taking the exam? Mine is scheduled for Oct 10th so I have two weeks left too. I have to pass FAR on Nov 29 after that, otherwise I'll lose my BEC credit… So I'm going all out for the next two months, but tax really is not my thing… AT ALL.

So let' say I purchase a super-computer for my business that costs $500,000. I can 179 expense it and not have to worry about depreciating it over its useful life, right?

Let's say I also purchased a new truck for $100,000 for my business. I cannot 179 expense that because I used up all of it on the super-computer. But I can take 50% (or $50,000) in bonus depreciation on it. Do I take regular depreciation on the truck in addition to the bonus?

The total depreciation expense should include both the bonus and the MACRS, right?

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

[jonm857]

So you're basically not going to have to capitalize the super-computer if you use 179. It's starting to make sense now.

Dr. Section 179 expense – – – 500,000
Cr. Cash – – – – – – – – – – – – – 500,000

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

[jpowell31]

I'm sitting on October 7th and am going to TRY to sit FAR around the 27th of November as well because I have some flexible hours until a huge conference (starting the 28th yikes). I won't lose credits yet but if I can't do it there's no harm in trying seeing as I can't sit again until January so it would seem like a waste, especially if I fail REG and still have 2 more to go. study buddies for 2 months!…
Anyway, that's how I see it with bonus depreciation. I've only seen examples where it was used in conjunction with 179 and MACRS though. which reminds me I wanted to ask @Jeff about the SIM on depreciation that I think either has an error or I' need explanation. See SIM number 46 if you have ninja and the second part of the question…50% is taken on the old truck (year 2) but the question specifies that bonus depreciation is not elected…WHY ?

[Reg_Slayer]

requirements to be a ESPP
-no more than 5% shareholder.
– The option price is not less than the lesser of 85% of the stock price when granted or exercised.
-The stock was held at least two years from the date of grant and at least one year from the exercise date.

requirements of an ISO.
-no more than 10% shareholder.
-The option price is not less than the FMV of the stock on the date of grant.
-The stock was held at least two years from the date of grant and at least one year from the exercise date.

[jonm857]

@reg_slayer

Thank you for bringing the ISO topic up because i desperately need to look that over. After that i am taking a break from tax and partying down with a monster, some commercial paper and bankruptcy. Hell i might even be crazy enough to take a few shots of estates and trusts. Woooooo party time

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

[Author]

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