[tl1cpa99]

Hi everyone. My REG test date is set for 11/30 and I guess I’m just looking for some clarification on which version of the tax law will be tested in Q4. I have been using Wiley as my main study course with Ninja as a supplement and I have noticed some differences. Wiley states that the exam for Q4 will test 2018 tax law as it would have been before the Tax Cuts & Jobs Act while Ninja states that 2017 tax law will be tested. For example, Wiley teaches bonus depreciation as 40% (would have been 2018 law before new tax bill), but Ninja has it at 50% (2017 law). Seems to be the items adjusted for inflation bring about the majority of these differences. Is there something that I’m missing?? Any advice is much appreciated!

[chandler]

My understanding is that the AICPA decided to test using only 2017 tax law through the remainder of 2018, and that any elements of the TCJA (including retroactive elements) are NOT testable until Q1 2019. This is a shift as they usually gear towards new tax law between Q2 and Q3. Honestly, though I wouldn't sweat the phase-out/inflation numbers too much as these are generally given in the question. They do this to keep from having to re-write questions every year for inflation adjustments. For example, don't be surprised if you see a gift tax question referencing a $12,000 annual exclusion, even though this hasn't been the exclusion amount since 2008.

[jeff]

As Chandler said, 2017 numbers are still in play through Q4 and any inflation-adjusted numbers will be given to you in the question, per the AICPA when I reached out to them.

[Author]

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