[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]

Just leaving it at 60%.

If I was only using NINJA I would, absolutely, finish 100% of it. But NINJA was just a supplement to my Becker studies. I went through 100% of Becker and right now I'm getting more out of targeted studying through Becker (i.e. I'm only working on Like-Kind exchanges).

When I use NINJA, I load up 30 question blocks at a time. I do those 30 and then see where my head is at. If my head is all swirly, I take a break and come back later. I don't really play with the options much so I always pull all possible questions. And the thing about NINJA is it will ask you the same question over and over and over and over and over again. I know you can set to only pull new questions but I never really did that. And unless you work thousands of NINJA questions, it's unlikely you will hit 100%.

Looking at my stats I have attempted 2303 REG questions. There are only 1867 questions total. I never saw 614 questions.

[PasstheCPA7]

Thank you!

[PasstheCPA7]

Can someone please help me with this tricky Statute of Limitations question?

A calendar-year individual filed an income tax return on April 1. This return can be amended no later than:

A) Four months and 15 days after the end of the calendar year.

B) Ten months and 15 days after the end of the calendar year.

C) Three years, three months, and 15 days after the end of the calendar year.

D) Three years after the return was filed.

The answer is actually “C”. My answer was “D”. I am not sure why it's 3 months and 15 days? Where did the “3 months and 15 days” even come from? That’s what I don’t quite get. I thought the rule was Later of: 3 years after the due date or 3 years after the return was filed. No where in my study materials do they mention anything about this?

Thanks!

[Peterman25]

Am I crazy here? What is missing form this question? I am to assume an ownership % to determine the DRD rate to use?

Kisco Corp.’s taxable income before taking the dividends-received deduction was $70,000. This includes $10,000 in dividends from an unrelated taxable domestic corporation. Given the following tax rates, what would Kisco’s income tax be before any credits?

Partial Rate Table Tax Rate

---

---

Up to $50,000 15%

Over $50,000 but not over $75,000 25%

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Peterman25]

@PASS

If you file early it is considered filed on the return due date. 4/1 = 4/15 filed date. (I just recently went through this in NINJA)

3 years plus 3 months = end of march. 15 more days = 4/15

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[PasstheCPA7]

@ Peter: I understand 4/1 to 4/15 is 15 days. But, we never count those 15 days. If you file on 4/1, it is considered to be filed on 4/15. We never say the statute of limitation starts from 4/1 and then from there, it's 3 years and 15 days. I don't know if you're using Becker, but. I have not come across this anywhere.

Second: Where did the 3 months come from? Becker doesn't state anywhere that you have 3 months (i.e. January, February, and March)? That's where my confusion is.

All Becker says is: It's 3 years from the LATER of: Due date of the tax return or date the return was filed.

Let me know what you think.

[Peterman25]

@Pass

After staring at the question for 10 minutes, I think you can just chalk it up to one of those poorly worded/vague questions.

You can immediately rule out answers A and B. Is D so wrong? I am not so sure because what is the assumption of the word ‘filed'?

I can see why C is mostly correct, but it would be more correct if they threw in ‘for which the taxes were filed' at the end of the answer. Or something along those lines.

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Peterman25]

I just got off the treadmill..cleared my head…and I think I answered my own question (bottom the previous page).

No ownership % stated so you can assume 0% = 70% DRD. That is used in the solution to the problem, but no explanation for the amount of the DRD.

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[imgonnabacpa]

Dear All,

I need to share a big issue that I face in getting the answers right. I have done all the becker questions many many times and have taken REG twice for 74. I have my 3rd and hopefully final try in less than a week but I am still scoring low on some of the section.

I have been doing majorly NINJA questions for the last one month and have attempted all but 400 and still have 700 incorrect question ( this includes 450 from B-Law).

Have not started the mugging or the flshcards yet and also any of the notes that i took while answerinf the questions.

Major issues that I have noticed:-

1) If I try a small set of question upto 15-20, I score high (85-100%) but if I increase the number of questions in the testlet, I score round 75only.

2.) I have read the book a month ago and have been trying questions for the last one month, still if I see a wordier question, I get scared. Inspite of knowing the concept, sometimes its difficult to apply the concept and answer.

Can you sharoe your experiences and study plan for the last one week? Plese suggest what should be done t this time. Its very crucil to pass REG this 3rd time to save my credits.

Thanks.

BEC - 78
AUD - 69,72,78
FAR - 73, 77
REG - 74, 74, April 20(Monday). Not anymore (Fingers Crossed xxxxx)

[imgonnabacpa]

One question for you …

What would be the charitable contribution deduction if AGI =$80k, Property with basis of $17k & FMV of $25K is contributed to a qualified charitable institution.?

NINJA says I know it would higher of

a) FMV limited to 30% of AGI ,(whichever is lower) or

b) cost basis upto 50% AGI (whichever is lower) ,

but becker says we should tke the lesser of cost or FMV with the 30% limitation. (Refer book R2-24).

Please explain.

BEC - 78
AUD - 69,72,78
FAR - 73, 77
REG - 74, 74, April 20(Monday). Not anymore (Fingers Crossed xxxxx)

[Anonymous]

a. 30% of AGI is 24,000 (FMV is 25,000 so choose the lower)

b. cost basis is 17,000 (cap would be 50% of AGI which is 40,000)

greater of the two would be A. Deduction limited to 24,000 the 1,000 is carry forward up to 5 years.

For the Becker comment I'm looking at the page you referenced now and if you look at the pass key it says:

for LT appreciated property is limited to the lesser of:

a. 30% of AGI (same as ninja 24,000)

b. the remaining amount to reach 50% AFTER CASH CONTRIBUTIONS.

[Sandia]

According to Yaeger – Charitable contribution x Individuals.

Short tem and property no related to charity and cash always adjusted basis- limited 50% AGI

Long term and property related to charity always @FMV- limited 30%AGI

@imgonnabacpa.. It is obviously that you know the material, I think it is the way that your brain works, short period x MCQ, questions are questions no matter how many are, you know or do not know. I have the opposite, my brain works better after 15minutes of concentration. Try to work on that… good luck and YOU CAN DO THIS.

FAR - 77 x2 Wiley book & no test bank
AUD - 83 x3 NINJA Test bank 3 time
REG - 80 x1 NINJA Test bank
BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
Ethic 100% Licensed VA CPA

[imgonnabacpa]

Thanks CPA8488 & Sandia . I think, I will only tke it as 30%FMV or ninja rule whichever applies becuse it is more clear.

Another one from NINJA.. I think there is a discoonect between the question and the answer choices… Question asks for the the IRA deduction amount while the answerr choice gives the IRA phaseout amount.

And as per becker R2-6, **for modified AGI betweem $181000-$191000 , the IRA deduction even for the non working spouse phases out.. Why not here then??

Question

Rita Spano is an active participant in a company retirement plan. Her husband, John, age 45, works for a company that does not have a retirement plan. The Spanos' joint adjusted gross income for 2014 is $185,000. John contributes $4,000 to an IRA for himself. How much of this $4,000 contribution for John can the Spanos deduct on their 2014 joint return?

A.

$4,000

B.

$3,200

C.

$2,000

Incorrect D.

$0

BEC - 78
AUD - 69,72,78
FAR - 73, 77
REG - 74, 74, April 20(Monday). Not anymore (Fingers Crossed xxxxx)

[Anonymous]

It is phased out because he made over 181,000. He can't deduct the full 4,000. I believe he can deduct only 3,200 answer B. The explanation should show you how to calculate it and arrive at 3,200.

[Gabe]

Hope everyone is doing well 🙂

AUD: 84
BEC: 76
FAR: 81
REG: 4/3/15

OK Candidate

[Author]

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