[mrsmadhuanand]

I am taking Reg on 26/5.This is my second try with Reg.I am using Beckers and Ninja MCQ. I am not able to understand the 1231,1245,1250 asset and also recapture concepts.I have a doubt in Sims regarding entering negative values and also should we enter $ symbol in front of all amounts in Sims and how to to that.Should I go with recent changes of 2016 or stay with 2015 tax amounts. Any last minute important tips for studying.Please help me with these questions.Thanks in advance for your replies.

[Anonymous]

For sec 1231,1245,1250 look at this link ,it will help you.
https://www.youtube.com/watch?v=g2rwfBexF2s&index=3&list=PLf9NGcR_ulpUzHV-ZJMMtBtoGPWM75N0F

[Mroque]

Those sections are for business used assets. Section 1231- gains are treated as long term capital gains and losses as ordinary loss.
Section 1245: machinery and equipment( Gains only) losses are reported as 1231 ordinary loss. The lesser of the gain or accumulated depreciation is equal to sec 1245 gain, if the gain exceeds accumulated depreciation the remaining is 1231 gain. The same applies for 1250 gains but 1250 is for real property used in business. Read Beckers R4-34 and do the simulation a couple of times.
I don't think you need the $ symbol and 2015 until July as far as I know.
Good luck.

[mrsmadhuanand]

Thanks Ano and Mroque for your reply.I hope I will pass Reg on my second try.Thank you so much once again.

[Anonymous]

These three sections are difficult. First, understand the concept. Gather all the sample MCQs pertaining to the three sections and then print them out together. Memorize the formulas (over 10 of them).

I've compiled 10 sample MCQs both from Becker and NINJA MCQs. Going back and forth these sample MCQs helped me learn the pattern and master the formulas.

Good luck on the 26th.

[mrsmadhuanand]

Thanks Amor for your reply.I will do what you told.I have print out with me will compare and see the questions.

[Author]

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