[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

[539Mayor]

Trying to figure out how to efficiently take quizzes and take the right notes. Not the easiest thing for me. Anybody have thoughts on how to be efficient and organized. Before i know it i'll be spending 2 hours answering 30 multi choice b/c I keep referring to messy notes.

Completed Becker in 4 weeks and am in the 70's. Bought ninja mcq's and audio to help get in the 80's before my test for mid.

Hope to answer some questions for you all soon.
Jason

[SONA]

Can you tell me the solution of this question, it appeared on the exam:

Tax Liability :$1200
Refundable credit: $800
Nonrefundable credit: $400 +$200

Please tell me what will be the answer?

[SONA]

Partnership Basis

Adjusted basis of property received
+Cash
+Any gain recognized by the Partner.(If cash paid to the partner for contributing asset)
= Partnership Basis

[SONA]

Do at least 50-100 MCQs and 10 sims everyday of Ninja and Becker mix.

In my opinion that will give good practice and give you some time management.

[539Mayor]

Tax Liability :$1200
Refundable credit: $800
Nonrefundable credit: $400 +$200

Answer: $200 refund ?? 1200 – 600 (non refund) = $600 – 800 (refundable) = $200 refund

[SONA]

Is there any order how we apply refundable and non refundable credit?

Do we always apply nonrefundable first and then refundable?
May be i sound silly, but really need to know.

[539Mayor]

Taking a step back. An order of operations does not seem to make sense. Moreover, Refundable credits have to go thru phase out rules before they become an actual “refundable credits”. I think the main take away is that even if your non refundable credits exceed your liability you can't use them nor carry them forward.

[SONA]

Lets say;

Tax Liability = 2000
Non refundable credit = 1500
Refundable credit = 300

In this case what will be the answer. Can you tell me what to refer for the straight forward view of these kind of questions.

[Reg_Slayer]

@SONA

I'd know what credits are REFUNDABLE (WE ACE) and which credits are not refundable (GRACEFUL). Also know where tax credits appear on the 1040. Note how whether or not the credit is refundable does not impact where it appears on the 1040.

Tax Liab
-TAX CREDITS
+AMT
+SE tax
-prepayments
=
Tax Due

Witholdings
E.I.C.
American Opportunity
Child Tax
Excess S.S.

General business
Retirement plan contribution
Adoption
Child & dependent care
Elderly/disabled
Foreign tax
Unused minimum tax
Lifetime Learning

[jpowell31]

@reg-slayer…have you decided on an exam date yet? sure is going to be a bit more quiet in here now! I haven't received by 10 point combo for FAR yet so today is another day off for me I guess (well I'm at work catching up on a bum load of quarter-end stuff but I'd take that over studying into the night :)).

[Reg_Slayer]

@jpowell31
application still processing, but in no hurry to take this thing.

you and @jon have been great company. Hope you passed, and hope his exam goes well today.

@all

am still having trouble with these “E&P distribution classifications” [c-corp's]

I always mix up what number we use as the MULTIPLIER, and what numbers we use as the RATIO.

example:

pre-distribution:
CEP = 24
AEP = 61
total = 85

Distribution #1 = 58
Distribtion #2 = 33
total = 91

to CEP: 58 * (24/85) = 16,376 WRONG

to CEP: 24 * (58/91) = 15,292 CORRECT

CONCLUSION:
total distribution = RATIO
AEP & CEP = MULTIPLIERS

[Reg_Slayer]

EXCEPTION to the 80% rule:

corporation assumes liab on s/h's property that was BIGGER than s/h's basis of the property.
= s/h can recognize gain

[Spartans92]

I find myself super weak in AMT (both individual and Corp) does Ninja MCQ cover these topics well? I am trying to go back and redo my becker questions first then I will hit ninja later this week;

BEC- PASS

[Reg_Slayer]

@Spartans92

id say practice as many SIMS as you can on both corporate and individual AMT. The mcq's dont really prepare you for it.

UNRELATED:
s/h's basis of stock in c-corp upon contribution of property is:
BASIS of that property 150
LESS any liabs attached to that property
PLUS any gain recognized

[waitspring]

Hi,

I plan to take RGE at the end of 11/16 or in the beginning 12/16. Hope I can pass.

Below are the citizenship/residency test in exemption that I am not sure about. Please let me know if I am wrong. Thank you for your time!

1. Head of Household status requires at lease resident alien. If a person is a Non-resident alien, he/she can't apply Head of household status.
2. Dependency exemption, the qualifying relative requires US citizen or Canada/Mexico.
3. Dependency exemption, the qualifying child doesn't require US citizen or Canada/Mexico, no citizenship test for qualifying child.
4. Dependency exemption, the qualifying relative doesn't require to live with the taxpayer, except non-relative. Non relative requires to live with taxpayer for whole tax year, however the other qualifying relative doesn't have the residency test.

[Author]

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