Heads up on using 2012 material - Section 179 did change
AUD - 88
BEC - 88
REG - January 14
"88 is a refactorable number, a primitive semiperfect number and an untouchable number. It is also an hexadecagonal number."
Heads up on using 2012 material - Section 179 did change
I think it's kind of silly that they test on such subjects as S179 which change from year to year. I think it would be better to test on the general principles of taxation. For example, test our understanding of the concept of accelerated depreciation, but not the specific annual limit as it applies to the one year we took the exam. After all, that's what CPE is for...
Well do we need to know the exact dollar amount of 179 or the concept of it and the rules of it? Wouldnt it be pretty costly to keep changing the test every year for 179? Plus you have 50% bonus depreciation for 2013? Which number are we going to have to know then for 2013? is it that it is 125,000 indexed for inflation or is it the 139,000 (which is the 179 after it is indexed for inflation)?
Got 2 weeks before my REG exam, any topics that I should definitely focus more on?
I'm at three weeks from today. Halfway done with videos after today. The next four days are all review/note taking/multiple choice. REG 3 sucks!!
Quick question in regards to R1 capital gains and losses...
From my understanding, a capital asset = real and personal property held by the taxpayer NOT used for trade or business. Now as Becker illustrates, there are several capital gains that you don't have to include into gross income a.k.a the "HIDE IT" acronym. The "E" of the "HIDE IT" acronym is Exchange of Like-Kind Business / Investment assets. the criteria to constitute a like-kind exchange are:
1. Tangible real or personal property
2. USED IN TRADE OR BUSINESS
3. Held for investment
So if you can see where I'm going with this...doesn't the gain on exchange of like-kind business/investment assets not constitute a capital gain because it is FOR business purposes...? All help is greatly appreciated.
I think you are thinking about this a little wrong. To not have a taxable gain you HIDE IT, the E (Like kind exchanges) are exchanges of property that you held either for business purposes (owning tow trucks)/investment. You in turn have to receive similar property. Basically the IRS says that if you trade something that is for the same purpose you had the original asset as, you can defer the gain provided you did not receive boot so long as it is used in business and not inventory or it is used as an investment. If you trade something for another thing and those assets are nearly identical, did you really gain from it? That is why you just roll your basis over and subsquently when you sell the asset you have a lower basis and ultimately recognize the defered gain.
What you said kind of clarified it for me as i went back to look up what it said....
the criteria are:
.....2. USED IN TRADE OR BUSINESS OR (i missed the OR)
3. Held for investment
thus constitution capital gains
....thanks again for the timely response. best of luck on your last part.
Hey CPA candidates,
Does anyone know if we have to memorize Tax form numbers and what each is used for in terms of multiple choice and sim questions.
So I've completed Becker R1-R4 and all of the assigned homework. I'm not scheduled to start R5 until Monday. I'm feeling pretty crappy about my long-term memory on some of this stuff. My homework grades have been solid, but I'm a worrier. What do you guys recommend at this juncture?
1) Wrap-up all tax material this weekend by redoing all homework
2) Wrap-up all tax material by re-reading and doing trouble areas
3) Move on to Business Law so I have more time to do a final review before the exam
I'm really considering getting the Wiley test bank. It's a pretty big investment for me at the moment. Naturally, I have to get all four sections because REG alone is 87 dollars and the whole package is cheaper than buying three individually.
PS: I hate trusts and estates
I would maybe say spend all day sat reviewing and working MCQs and then maybe start sunday with BLAW. That way when you come back for your final review, you are looking at this stuff for the 3rd time instead of 2nd time (if you were to move right on to BLAW) Plus BLAW while it is very important only will make up generally according to the CSO 17-30% or something like that of your test). So obviously the more comfortable with tax you are the better chance of passing due to the fact it makes up the majority of the test. That is what i would do anyways.
I REALLY hope tax credits aren't heavily tested. Barf.
So REG is consistently the only exam I have done poorly on. I am about to take it again for the 3rd time and in my past two attempts have yet to break a 60. I am having problems even deciding what it is about reg I am not understanding. The simulations are definitely a killer but I am clearly not doing so hot on the MC either. I think the main thing I am struggling on is understanding concepts such as this:
Capital Gain 20,000
Capital Loss Carryforward (35,000)
Total = (15,000)
but there is a 12,000 limit so 12,000 is carried forward and your capital loss is 3,000. Can someone explain to me Why the 12,000 is carried forward and the loss is 3,000 and not the other way around? If the limit is 12,000 it seems to me that the capital loss should be 12,000 and then the remaining 3,000 gets carried forward. Conceptually I am just not getting this. I think I have the same issue when it comes to deductions and adjustments.
I'm not sure what you mean by a 12,000 limit. But I see it this way:
Capital losses absorb capital gains. 20,000 in gain is absorbed by the 35,000 loss, leaving a balance of 15,000.
Presumably you're talking about individuals. Individuals are allowed to reduce their ORDINARY income by 3,000 of capital loss. So 3,000 of the 15,000 remaining reduces this year's tax income.
You are left with 12,000 to carryforward
I dont get where you are getting 12,000 as the limit. I thought you could have as much capital loss carryover as you wanted you just could only use capital losses to the extent of capital gains then an additional 3,000 for ordinary income provided that the taxpayer is single, MFJ, Head of Household. I know the one exception is that if you are MFS (Married filing seperately) then you only get to take 1,500 of cap loses against ordinary income. But there is no limit on the amount of capital loss you can carryover
keep getting ~90% on the R1-R4 progress tests but I still can't help but think I memorized the facts of most of these questions by now. Really close to pulling the trigger on the Wiley test bank
The Wiley test bank has a lot of the same questions as becker, also a bunch of different ones. However, the Wiley testbank has different explanations, and when you click text link it shows you exactly where in the Wiley book the explanation comes from.
@mypetmeatball - I understand it the same as you... for Corps it's different, but individual it's $3000 limit!
One of the things I've learned from studying for FAR was...to use the Progress Test after every single chapter. For FAR, I actually went through all the chapters, doing all the MCQs and then starting reviewing...Well, I realized I remembered I saw the concepts before, but I could not remember what to do with them & how to use them in calculations. So, this time, I will be doing a Progress Test after every single chapter. I say...even if you start with BLAW, do not forget the R1-R4. Do a few MCQs from tax part every day or every other day only to keep it fresh in your mind. The point is that during exam we're going to have tax & blaw MCQs together, so we might need to jump from one to another, so keeping tax concepts fresh while working on BLAW might not be a bad idea. At least this is what I am trying to do.
Just finished up with Becker's last chapter, now onto 1.5 weeks of review. What chapters do you guys think i should focus most of my attention reviewing?
I thought about separating the tax and b-law tasks in the MCQ. First the tax question while flagging the b-laws and than over to the business law tasks. Maybe it's easier if you don't change your mind after every MCQ between these two major and different topics.
Anyone else thought of that?
I have not got to that point yet, but I think you would lose time by flagging BLAW questions because you would have to read (or partially read) them anyways. In an exam situation you want to use your times wisely, so wouldn't you want to review in a way that would help you be in a more exam-like situation? Just a thought...
Ya i wouldnt flag them, you only get 3 hours and truly it doesnt matter that much i mean you have bigger fish to fry then worrying about which MCQ is what. Plus there will only be (according to the CSO) like a MAX 30% of the test so most wouldnt be flagged anyways. It is nice to have a break every now and then from tax too, so i plan on just plowing through them. Start at 1 go to 24 and dont look back lol
Am about to Finnish reviewing the material "Becker" and had go little bit though roger review test bank app
Feel ready for the M/C but for sure am not ready for the sim and actually that was why I fail from the first place ! So
Any idea how can prepare my self for the sim ? I know they are at all not predectibale but I need tips to deal with them !
Also do any one of the review material explain the annulazation method !? Not just the concept ! I mean as matter of calculation ?
Good luck all ,,,,
Becker doesnt even mention the annualization method... You seem very concerned about this topic and it makes me wonder why. As far as the calculation goes, isnt the annualization method just (Income/# of months for that period of income)*12?
Am retaking the exam so you might wonder why :)) it's not as you said it's something related to 90% of the current year income but I don't know how the matter of calculation is going for
Each installment ?
And it's mention in Becker but as a concept level not as matter of calculation !
Lol ya i figured. To answer your question though, I do know what you are saying and the calculation is kind of what i said in my original response. This is assuming that you are given 4 different income levels at 4 different dates (the dates probably would be around the end of each quarter).
For the first installment you have to annualize the income - (Net Income through first date (income-deductions)/#of months in the first date)*12.
This gives you your annualized income as of the first quarter (assuming there are 4 dates). Multiply that by 39% (top rate for corporations/ 35% top rate for individuals) If no rate is given, if a rate is given use the given rate. This is the total annual tax due. For individual you would multiply this by 90% (unless AMT then 110%) for corporation multiply this by 100%. After you multiply by 90% or whatever you need to divide this number by the amount of installments that are left to be paid. In this case the first one would be divided by 4 assuming there are 4 installments due.
For the next and subsequent installments you would do the same thing. Annualize the income, multiply by the applicable top tax rate to find total tax due. Multiply then by 90%, 100%, 110% depending on taxpayer (Ind or Corp). THEN subtract out any tax payments made in previous installments from earlier in the year. This number after all that is the remaining tax left to be paid. Divide the remaining tax left to be paid by the number of installments left to be paid and this is your installment payment. In the second quarter assuming there are 4 installments required, you would divide it by 3.
Do this for the rest of them and that is how you figure out quarterly installment amounts.
1 income level is much easier to do you just then take the income subtract any deductions. Multiply by the appropriate tax rate. Then multiply by 90% and divide by required installments. This gets you amount to be paid with each installment.
Hope this helps, It is hard to help you cuz i dont really have an example to walk you through
Maybe it would be easier if you just made up a example of what you are asking because Becker doesnt have any computational questions on what you are asking, i just looked.
Thank you sooo much ,really appreciate your effort to explain it and I got it now ,,,
Good luck as I see it ganna be your last one :)
Can anyone explain marketed opinions to me (better than the Becker book)? It's the only concept in the Ethics and professional responsibilities section that just isn't clicking with me..
I have been using Becker to this point to prepare for the test. However, I just executed my free 24 hour subscription to the Wiley test bank (to see if it's worth it before paying). I just started a practice test and became alarmed because there are a fair amount of questions on material that Becker failed to cover.
Can anyone who took the exam after studying exclusively with Becker shed some light on this issue? Were there questions on the exam you had never seen before?
Thanks for any help!
I had no idea there was a trial period for the Wiley test bank
thanks for the heads up
Yep! I'll be up late doing SIMS before the trial runs out. Wild Friday night.
haha. so there is a lot of material in the test bank that becker didn't touch huh? How are you scoring? Hopefully there aren't any sims you're completely unfamiliar with.
i had use wily test bank in Auditing and in Far, had found as you said many thing not cover by becker as you said but they were never part of the 2 exams !!! wiley do really cover so many topic that's never would be part of your exam but there are beneficial for people who need preparation from zero >>
Becker rockers!! do you think i should go throught ch 8 or just ignore it !!!! and save my time for the other part, in my last exam had review part of it but never feel it make diff, also i had download roger teat bank app there are non Questions covering Becker ch8 topics !!? so any advise ?
How do you get the free 24 hour trial version to Wiley Test bank? I would like to see how Wiley's test bank works and also test myself and see where i am at with knowing information.
To be honest i think the main points from chapter 8 that i am going to look over is the differences between llc, llp, corp, scorp, things like that. If you look at where the chapter 8 questions are coming from... Most of them are made up by Becker. You can tell this in the upper left hand corner, the ones that are released say LW 94 #84 or Released 2009. So that makes me feel that it doesnt come up enough to warrant really studying and looking through. Even Pete said after the company formation stuff just skim through once.
This topic has been closed to new replies.