[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for REG.

“Death and Taxes” – Individual Tax for the CPA Exam

Posted by Another71 on Monday, November 24, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Anonymous]

@HR – The explanation to the correct answer is as follows:

“The buyer Zimmer is not liable to West, the unlicensed real estate broker, because West violated Kansas licensing requirements. Failure to have a license required to protect the public (as opposed to merely raise revenue) renders the contract void. Real estate broker licenses are required to protect the public”

The explanation for A (wrong answer) is as follows:

“Under the Statute of Frauds, certain contracts must be signed by the party sought to be bound to be enforceable. The contract here-to provide brokerage services-probably is not within the Statute since it is for services and can be performed within a year. But even if the contract were within the Statute, it still would be enforceable against Zimmer since Zimmer signed it; it is irrelevant that West did not sign”

Q # is 29 under Contracts in Becker

[Svitlana85]

RE:

L Corporation, an S electing corporation, pays single coverage health insurance premiums of $4,000 per year and family coverage premiums of $7,000 per year (the $7,000 includes single and family coverage). SH owns 10 percent of L stock and L pays SH's family coverage under the health insurance plan. What amount of insurance premium is included in SH's gross income?

A. $ 0

B. $ 700

C. $4,000

D. $7,000

Can anyone point me to the “rule” about this?

Gabe, they are talking about when SH owns more than 2% of stock, their fringe benefits are taxed. Is that what you are looking for?

CPA Excel/Wiley/Ninja Notes/MCQs

FAR Feb 2014 85
AUD Aug 2014 88
BEC Nov 2014 85
REG Feb 2015 71 Retake April 16, 2015

[Gabe]

Thanks svitlana!

CPA, CFE
CISA- Experience will be completed by August 2016

[Holly]

What entities are entitled to NOL's besides C corps?

AUD - 76
BEC - 82
FAR - 82
REG - 86

Becker & Ninja MCQ

 

 

 

BEC - 79
REG - 85
AUD - 5/27/16

[Anonymous]

Based on NINJA, my weak area is currently Business Law. Makes sense since I started with Business Law and have forgotten a bit of it. Plus some of the concepts are really complicated. For example, I HATE Commercial Paper. Contract Law is just really tricky because it gets really technical and some of the rules are hard to follow. It also doesn't help that the majority of the questions are similar to the following:

“Bob enters into a contract for the sale of elephants with Susan. Susan transfers her rights to Bill. Bill enters into an unrelated contract with Tom to purchase land. Chuck is a witness to all of these contracts. Two years later a train carrying passengers left the station heading west from Chicago at a speed of 65 mph. Who won the 1972 World Series?”

On a brighter note, I got my Trending up to 80%!

[Anonymous]

@angel did you move your test date up?

[Anonymous]

Not yet but I'm going to. Just waiting to hear my wife's schedule for the next month before I choose a new date. I'm targeting mid-April right now but won't know for sure for a day or two.

[Svitlana85]

Does anyone understand the Unified credit? It says that the first $5,340,000 of transfers from an estate and/or gifts will not trigger a tax liability. But gift exemption is only $14,000 a person a year.

I don't understand how those two relate to each other. Anyone?

CPA Excel/Wiley/Ninja Notes/MCQs

FAR Feb 2014 85
AUD Aug 2014 88
BEC Nov 2014 85
REG Feb 2015 71 Retake April 16, 2015

[Holly]

Trusts and Estates can have NOL's

AUD - 76
BEC - 82
FAR - 82
REG - 86

Becker & Ninja MCQ

 

 

 

BEC - 79
REG - 85
AUD - 5/27/16

[Holly]

@Svit I think it's a matter of taxable v reportable. You get an annual exclusion of $14,000 for 2014 before its reportable (and taxable assuming you haven't met your taxable amount), and a lifetime exclusion of $5,340,000 before its taxable.

AUD - 76
BEC - 82
FAR - 82
REG - 86

Becker & Ninja MCQ

 

 

 

BEC - 79
REG - 85
AUD - 5/27/16

[Svitlana85]

Got it. Thanks @HR!

CPA Excel/Wiley/Ninja Notes/MCQs

FAR Feb 2014 85
AUD Aug 2014 88
BEC Nov 2014 85
REG Feb 2015 71 Retake April 16, 2015

[Anonymous]

Two questions.

Do they still do essays for in the Reg Simulations?

Also how much of the cpa exam is law. I have some sources saying 20% and others saying 30%

[Gabe]

@sunni never heard of essays on REG, so nope 🙂

Honestly, depends on the exam. Last quarter is seemed more heavily tested, but the “official” percentages are between 17-20%. Either way, it's not something you want to skimp on.

Also HR is correct, it's a matter of reportable vs taxable in re: 5.34M lifetime CR.

CPA, CFE
CISA- Experience will be completed by August 2016

[Gabe]

Zack Limited Partnership intends to sell $6mn of its limited-partnership interests. Zack conducts all of its business activities in the state in which it was organized. Zack intends to use the offering proceeds to acquire municipal bonds.

Which of the following statements is correct concerning the offering and the registration exemptions that might be available to Zack under the Securities Act of 1933?

A. The offering is exempt from registration, because of the intended use of the offering proceeds.

B. Under Rule 147 (regarding intrastate offerings), Zack may make up to five offers to non-residents without jeopardizing the Rule 147 exemption.

C. If Zack complies with the requirements of Regulation D, any subsequent resale of a limited-partnership interest by a purchaser is automatically exempt from registration.

D. If Zack complies with the requirements of Regulation D, Zack may make an unlimited number of offers to sell the limited-partnership interests.

I continually get this one wrong. Any help? Page number reference? IRC reference?

CPA, CFE
CISA- Experience will be completed by August 2016

[Holly]

@Gabe I have no idea what the answer is but if I had to guess, I'd guess C. What is rule 147?

AUD - 76
BEC - 82
FAR - 82
REG - 86

Becker & Ninja MCQ

 

 

 

BEC - 79
REG - 85
AUD - 5/27/16

[Author]

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