[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

[imgonnabacpa]

whats the difference between recourse( included to calculate the basis ) and non recourse liabilities of a partner?

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

[willpassby2014]

Can some one tell me how was the 70% assumed in the absence of any controlling interest %

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%

A.

$10,000

B.

$10,750

Incorrect C.

$12,500

D.

$15,750

BEC Passed
FAR Passed
AUD Passed
REG Passed

[jstay]

@willpass yeah i got B but i dont know exactly why we go with 70%. I guess if it was anything else the question would have specified?

As long as were on topic of DRD, the numbers are

0 -19% = 70% DRD

20- 79% = 80% DRD

80%+ = 100% DRD

correct?

[Anonymous]

I saw that question too. It doesn't specify so you have to try both 80% and 70% and see what answer fits

[Anonymous]

imgonnabacpa,

if it's a recourse liability, they can come for your personal assets, if not recourse, just for your business share

[jstay]

@imgonnabacpa,

with recourse = partner is PERSONALLY liable (bears economic risk), creditors allowed to collect what is owed for debt even AFTER they have taken possession of collateral. (Ex would be garnishing wages). recourse are included in at risk basis

without recourse = creditor cant pursue anything beyond collateral. not included in at risk basis.

[hunter32]

@willpass and @jstay: unrelated =70%

BEC - 80 (Becker)
AUD - 92 (Becker+NINJA MCQ)
FAR - 87 (Becker+NINJA MCQ)
REG - 90 (Becker+NINJA MCQ and Audio)

[willpassby2014]

Thanks guys

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

HA HA- Got tricked by the question. Should read it carefully. Any one any comments on this? or am i the only one who is dumb

Feld, the sole stockholder of Maki Corp., paid $50,000 for Maki’s stock in Year 1. In Year 2, Feld contri­buted a parcel of land to Maki but was not given any additional stock for this contribution. Feld’s basis for the land was $10,000, and its fair market value was $18,000 on the date of the transfer of title. What is Feld’s adjusted basis for the Maki stock?

$50,000

$52,000

$60,000

$68,000

BEC Passed
FAR Passed
AUD Passed
REG Passed

[hunter32]

Did you choose C?

BEC - 80 (Becker)
AUD - 92 (Becker+NINJA MCQ)
FAR - 87 (Becker+NINJA MCQ)
REG - 90 (Becker+NINJA MCQ and Audio)

[willpassby2014]

The correct answer is C but i choose D. My calculation was like this.

Adjusted Basis 10,000

+Gain $8000

+Cash 50,000

The reason i added gain was i just read property was transferred without any stock exchange. so if any property is transferred without exchange for stock then gain should be recognized. Then i read he is the sole owner. According to me this is tricky.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[hunter32]

I got tricked by that one at first thinking that it was 50 since he didn't receive any stock

BEC - 80 (Becker)
AUD - 92 (Becker+NINJA MCQ)
FAR - 87 (Becker+NINJA MCQ)
REG - 90 (Becker+NINJA MCQ and Audio)

[jstay]

Yeah i went with @hunter32 choosing C but was confused with the whole not receiving stock.

@hunter32, good luck this week, how are you feeling?

[imgonnabacpa]

@jstay : Is the answer C because when he is only trnsfering stock and not getting anthing which which only increase its basis in the propertyby NBV and not recognise gain as its kindof additional cpitl contribution but not under sec 351. Right ? anyone ?

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

[imgonnabacpa]

Damn nervous … lots left to see once tonight before the exam tomorrow early morning .

Wish me luck please ..! I did put in my best but need luck & wishes to pass.

Please send in your positive thoughts. 🙂

All the best to everybody taking exam this week !!

Cheers !! 🙂

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

[Author]

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