[joonpark1212]

Hello,

I’ve been studying REG for the past couple months, and i keep getting confused with few ‘verb’ they tend to use. i.e., floor, threshold, phaseout, excess, exceed.

I don’t know why but it confuses me!
Could anyone be able to confirm if floor/threshold/phaseout/excess/exceed are synonyms to each other?

Thanks!

[sweazy]

floor: the low point where something starts. EXAMPLE- Miscellaneous expenses subject to the 2% floor. Floor in this example being 2% of your AGI, which means the deduction doesnt start until youve met that floor. If your AGI is 100k, 2% of that is $2,000, and you have $3,000 worth of qualifying expenses, but since your floor is $2k, you only get the deduction for everything above that $2k, so your real deduction is $1k on your 1040.

phaseout: It's like a window where an event happens, rather than a specific point (floor). EXAMPLE: that $25k mom & pop passive activity phaseout that begins at $100k AGI and gets reduced $0.50 on the dollar up to AGI of $150k.

Excess and exceed are pretty synonymous with each other and dont really mean much beyond their regular definition.

BEC: 77
AUD: 67, 85, 87
FAR: 74, 74, 79
REG: ___

[joonpark1212]

@sweazy
Thanks a lot. Went over numerous different books try to understand the difference. Now i clearly understand it because of you!

[joonpark1212]

@sweazy
I see that you made a big jump in score for REG from 60s to 82. Could you be able to tell me what you did different to make the big jump?

[Author]

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