[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

[The.Underdog]

Yeah I wish they would emphasize that more. especially business law 17% for 200+ pages cmon wth. I almost feel guilt reviewing blaw and want to spend all my time on tax

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

[The.Underdog]

When MCQ don't Match what Ninja note says

Ninja notes page 18
MARRIED FILING JOINTLY
Ø Different accounting methods between spouses are OK
if they each own a small business
Ø Non-resident aliens can file MFJ with their spouse

MCQ
A husband and wife can file a joint return even if
A.The spouses have different tax years, provided that both spouses are alive at the end of the year.
B.The spouses have different accounting methods.
C.Either spouse was a nonresident alien at any time during the tax year, provided that at least one spouse makes the proper election.
D. They were divorced before the end of the tax year.
This answer is incorrect because if either spouse was a nonresident alien at any time during the tax year, both spouses must elect to be taxed as US citizens or residents for the entire tax year.

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

[Spartans92]

Hey, can anyone explain how they got 10k for the corporation basis.

Question: Token contributed $10,000 in cash; property worth $40,000 ($5,000 basis), with a related assumed recourse liability of $20,000. He meets the 80% control test. Based on Becker the Corporation basis is 10k because he has a basis of (5k) plus gain recognized 5k. However, in the reading it states that Corporation basis is the GREATER of transferor basis + gain recognize OR debt assumed. Which debt is (20k) in this case.. but why isn't it 20k??

This question is from a SIM from R3 and it is driving me crazy because I thought I understood. Thanks!

BEC- PASS

[A1lessio]

@Spartans92 – ugh now im confused. I am redoing chapter 3 sims now and hopefully something will click.

AUD (08/02/2016)

[A1lessio]

Can someone please post a cheat sheet of limit amounts. I saw it previously in the post but don't remember what page.

AUD (08/02/2016)

[mtaylo24]

I forgot how much I hated the Ethics section for Gleim!

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Spartans92]

LOL can someone answer my question from above ^^. I really wanna understood that concept. Thank you very much!!

BEC- PASS

[mtaylo24]

@Spartans92, I'm hella rusty at regulation, but let me take a stab at this. Cash received 10 k + 5 K Basis from the property = 15 K, but you have 20 K Liability relief, so that is a 5 K gain, that the corp can recognize from the shareholder. So you can take the 5K carryover basis from the property and the 5K gain that is recognized from the contribution to get 10K.

I might need someone else to confirm…

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Spartans92]

@mtaylo24, Yes that is correct. I mean I understand that part but then in the book it said you take the greater of what you just said or the debt assumed (20k) in this case. So my question is why not the 20k based on the text book? LOL. Not sure if I am making my point clear.

But other than that I understand you take the carryover basis + gain recognized is generally the corp's basis. If you are using becker R3 page 2 states what I am trying to ask.

I appreciate for the help tho!

BEC- PASS

[mtaylo24]

@Spartans92, I have no clue LOL!

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Spartans92]

Haha neither do I!! The only reason I could think of is because the 20k debt assumed is reduced by the contributed cash (10k) so the net debt assumed is actually 10k? Which is the same as 5k recognized + 5k in basis of property. Can someone confirm or offer some insight?

Little venting.. These SIMS are F***ing terrible! I thought I could finish R3 and R4 Sims today but I am totally destroyed by R3 alone. Moving back to mcq 🙁 They are so time consuming. Good Luck everyone else!
Good thing is they do really test us on the concepts. Those E&P ones should not be underestimated.

BEC- PASS

[RE2PECT]

I have no idea how I'm going to learn all this sh!t. I'm doing sort of a modified Ninja method, but I feel like taking notes wastes so much time since basically everything in the book seems important.

I hope it starts making a little more sense once I'm pounding mcq's because right now it seems impossible. Failing BEC the second time screwed everything up and now I'm forced to take REG sooner than I wanted.

Just felt like venting because nobody else knows what we're going through lol.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[mtaylo24]

What's up @Re2pect? Are you running with Roger again? Reg isn't half as bad as BEC calc wise, you just need to know individual and how to calculate basis and gain loss. Estate/Gift tax also doesn't require much. The rest is conceptual (BLaw and Ethics).

I just started back up, and its going slow, but I hope to pick up the pace today. No videos or text for me (this is my fourth attempt), I felt it worked ok for BEC on Saturday.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[RE2PECT]

What's up mtaylo24! Hope we pull off BEC this time or I'm seriously going to lose it lol. I'm using Roger and the 10 point combo. I should be done with all the tax videos today or tomorrow and not sure if I should even bother with the videos for blaw. I feel like he's just going to be reading the book back to me anyway.

I've been copying down the Ninja notes as I go through each chapter in Roger, but don't really feel like it's helping. I've also been copying down the flashcards, but feel like I'm wasting my time with that too. I've never really been a note taker, but most people here are advocates of it so I'll try anything for a 75 lol.

The calcs are more straightforward than BEC, but if you forget one exemption or deduction you're screwed. To me the hardest part is trying to remember all that. Hopefully the mcq's will drill that into my brain once I'm constantly doing them.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[mtaylo24]

^^Sounds like you have a plan. You will nail the thresholds the more you work the problems… From my experience, do not sleep on BLAW or Ethics though. Those sections are worth 40% of the MCQ. I got weaker on BLaw for my 69 and weaker on Ethics for my 74.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Author]

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