[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

[So FAR So Good]

I'm a little confused on reimbursements as they apply to certain itemized deductions.

For Medical Expenses and Casualty Losses, I know you reduce the amount you can deduct by the amount you're reimbursed, but does that cross over a tax year?

For example, ignoring thresholds, you have medical expenses of $1,000,000 in December 2015 and you got reimbursed $500,000 in March 2016, just before you're going to file your 2015 axes. Do you deduct the full amount of $1,000,000 in your 2015 taxes a then include the reimbursement of $500,000 as an income item in 2016, or do you deduct only $500,000 in 2015 knowing that you got that reimbursement.

Even one step further, let's say you only got reimbursed in June 2016, after you already filed your taxes. Do you file them showing deductible amount of $1,000,000 in 2015 and $500,000 income in 2016? What if you know it's coming, but you still don't have it by the time you file?

F - 91 (6/5/2016)
A - 7/30/2016
R - 10/8/2016
B - 12/10/2016

[RE2PECT]

Thanks for the advice. I don't plan on skimping on anything, but I know I need to nail down tax if I want any chance of passing.

When are you taking it?

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

[mtaylo24]

That's good, they are the IT/Govt NFP sections of Reg haha! I hope to take before the cutoff (Nov 14). I'm waiting to get paid so I can pay for this mess, then I should know which dates are available.

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]

Gotcha. I'm taking it 11/26, but wish I could push it back until the end of the window. Wish I never tried saving the $75 application fee and scheduled it when I was actually planning on taking it. Could have used those couple extra weeks.

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

[The.Underdog]

Test Today,
lets go!!

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

[Spartans92]

I was doing Ninja MCQ and came across a question on Child Tax Credit. Do we really have to know how to compute this? Is it common for exam to even ask you this, I feel like its very minor detail that no one could ever memorize due to the heavy info.

BEC- PASS

[RE2PECT]

@Spartans92- After multiple attempts for BEC, I've come to the conclusion that anything is fair game. You just have to figure out if it's worth the extra time and effort to get that particular concept down. If anything you'll maybe get one question on it and hopefully it won't be included in a sim.

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

[Spartans92]

Ahh, Thanks for the reply @Re2pect. I guess out of all my takes I haven't experienced a particular computation aside from BEC but that was pretty much a given we have to know the calculations but for REG?? You're right about whether it being worthwhile. Do you have any good ways to study individual AMT?

BEC- PASS

[RE2PECT]

I've gotten some really random questions on all my BEC exams. Some that were mentioned in one sentence of the book and never heard from again and others that weren't mentioned at all. A lot of the computations also required extra steps that none of the practice problems included.

I've only been studying for REG for a couple weeks and I'm doing the Ninja method so I haven't spent a lot of time on each topic. I'm trying to get through the book and videos first and then go back and start hitting mcq's. AMT was hard to understand so I'll be going back and focusing on it once I get through blaw.

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

[mtaylo24]

@Spartans92, I was just working through this today.

Add back adjustments and preferences to get AMTI like state and local taxes and misc itemized deductions that exceed 2%. Other adjustments are standard deductions and exemptions.

1.) (TI + Preferences/adj)-phase-out x 25%
2.) Take the above and subtract it from the AMT Exemption
3.) AMTI – Exemption from 2 x 26% to get TMT
4.) TMT – Regular Tax liability = AMT

Here is a good example

Question: 8 Rachael, a single filer, has taxable income of $90,900. She has tax preferences and adjustments totaling $39,800. Assume her regular income tax liability is $18,213. What is the amount of Rachael’s alternative minimum tax liability?

A. $2,581
B. $1,833
C. $15,769
D. $0

Answer (A) is correct.
The AMT exemption for a single filer is $53,600. This exemption is phased out by 25% of the amount of AMTI over $119,200 for single filers. AMTI is $130,700 ($90,900 + $39,800). The phase-out amount is $2,875 [($130,700 – 119,200) × 25%]. The exemption is $50,725 ($53,600 – $2,875). The tentative minimum tax is $20,794 ($79,975 × 26%). The AMT is $2,581 ($20,794 tentative minimum tax – $18,213 regular tax liability).

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)

[A1lessio]

Anyone here use Wiley MCQs? The questions are so much harder than Becker.

AUD (08/02/2016)

[Spartans92]

Thanks mtaylo24! Dang, we literally need to memorize those steps! What software do you use? I dont recall seeing that in becker. Heck, Becker hardly covered AMT. I was fortunate enough to not see it my first take but I have a feeling I will see it this round. Few more days, I'll definitely brush up on AMT topics!

BEC- PASS

[mtaylo24]

^^^I'm using Gleim, but I honestly haven't been asked that on any of my 3 attempts, but after the BEC exam I took on Sat, I wouldn't be surprised if they snuck one those in.

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]

Ahh, Sounds like Gleim is more intense. I recall one of my professor was a big fan of Gleim, he ditched becker and paid for gleim out of pocket. I hope I won't see it on my exam LMAO! Otherwise, I really gotta take a pass. What did you do differently on your 3rd try? I see that your score went up significantly! Super close, best of Luck!

BEC- PASS

[mtaylo24]

@Spartans92, I only did about 7 chapters of Gleim last time then switched to Ninja MCQ my last 2 weeks, aiming for review phase, which I achieved like 2 days before the exam. I only gave myself 27 days. I want to make it through Gleim's TB (no lectures or notes) once this time, and then I might switch to Ninja after, hoping to get to review 10 days before I sit. W/ Gleim I'm already on ch 6 (prop tax) of 20.

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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