[Seths1113]

Hi,

I’m taking the exam this month and I’m using Becker to study along with the Wiley test bank. I have two questions I’m hoping someone can help me with:

1. In the Becker book it has two different rules for Section 179. If I”m taking the exam this month, do I use the $500,000 threshold or the $200,000 threshold before reducing dollar for dollar?

2. I’ve seen the estimate for tax to law questions is 60/40. Is this just for multiple choice? It seems to me that the sims are likely to be all tax due to the fact that Becker has very few law questions and Wiley doesn’t have any. So is it 60/40 for multiple choice and 100% for sims, bring the total to more of a 75/25 split on your overall score?

Thanks!

[J]

1) I don't know where you saw a $200,000 threshold. It WAS $139,000 (and a dollar for dollar reduction over $560,000). It then was changed back to $500,000 with a dollar for dollar reduction over $2,000,000. I would assume to use this number; with that said, I did see an AICPA-released question from either 2011 or 2012 dealing with Section 179 in which the maximum expense amount was given in the question.

2) If you look in the guidelines regarding content, “business law” is actually only 17-21%. The other approximate 20% actually deals with items that I would consider partially business law and partially taxation (i.e. Treasury Circular 230). I haven't taken REG yet, but I've never heard of a simulation being anything other than taxation… this doesn't mean that they couldn't throw one in there though.

[Seths1113]

Thanks for your response. In the 2013 Becker Regulation book it says for 2013 and forward the maximum amount is reduced dollar for dollar by the amount of property placed in service during the taxable year that exceeds $200,000.

[J]

I think they would give you the amount to use in a Section 179 question, but generally you would be tested on the 2012 tax year (at least in the first two quarters of 2013). Good luck!

[Author]

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