[Anonymous]

NINJA Question –

Hi all,

According to Ninja Notes, the Jobs Act increased the exemption under Regulation A from $5 million to $50 million. This is what is in the updated version of Ninja Notes. However, I have the 2014 Becker book and it says $5 million.

So is Becker wrong when it comes to this new rule? I am not sure exactly when this new rule was passed, as new tax law is usually testable six months after the effective date.

[jeff]

This law has been in effect for the exam for a year now, give or take.

NINJA is correct.

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

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

[Anonymous]

Wow, it's a good thing I supplemented Becker with Ninja then!

[Anonymous]

Another question:

In Becker under Corporate AMT it says to add back organizational expense amortization.

In NINJA Notes it says to add back organizational expense capitalization, not amortization.

I also noticed that Becker did not update the 506 rules to allow solicitation to accredited investors, which means they probably did not include any updates from the JOBS act. Kind of frustrating, the reason I got Becker was because the firm I started with is paying for it, but you would think they include new tax law updates if they might be tested.

Another Becker error?

[Anonymous]

Another Becker vs NINJA Notes discrepancy:

On page 45 of the NINJA Notes it says corporate investment expense is not limited to investment income.

Becker says that corporate investment expense is limited to taxable investment income, just like individuals.

Becker specifically goes over this in the lecture, so who is right here?

[jeff]

From the Form 4626 Instructions (Corporate AMT):

Line 5c.

When figuring ACE, the amortization provisions of section 248 do not apply. Therefore, charge all organizational expenditures to a capital account and do not take them into account when figuring ACE until the corporation is sold or otherwise disposed of.

From the Form 1120 Instructions:

Line 18. Interest

Note.

Do not offset interest income against interest expense

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

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

[Anonymous]

Once again, you are right – it looks like I will have to get in contact with Becker.

[Anonymous]

Becker got back to me on both questions. Here is what a Becker support assistant said:

“For your exam the $5 million amount will be tested, if at all.

No. Business interest expense related to investments is limited to taxable investment income.

Hope that helped,

Becker Academic Support”

They are really not very helpful.

[jeff]

NINJA is correct. Go with it and focus on more important things…like Agency Law 🙂

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

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

[Monkey Wrench]

See, you spend a lot less money on Ninja and hes right there to answer, then you pay lots and lots of money for becker and they don't care……

[Anonymous]

Yes, at least they are not major differences. This makes me glad I supplemented with NINJA though. From now on if there is a difference between Becker and NINJA, I'll go with what NINJA says.

[Anonymous]

Another Becker error. They claim that OSHA does not need a search warrant, and NINJA Notes says they do if the employer requests one. According to multiple sources, OSHA does need a search warrant if requested. Once again NINJA is correct.

[ykim32]

What is the source?

‘Jobs Act increased the exemption under Regulation A from $5 million to $50 million.' on NINJA note

If we have the question of small offering about Reg A, 1933, should we answer for 5 million instead of $50 million?

[leglock]

[Anonymous]

No.. use 50 million. The law has been in effect for about a year now, so Jeff is correct.

[leglock]

I'm thankful I have now found this forum. I get my REG results tomorrow; after solely studying with Becker. However, I have already begun restudying in anticipation of failing because as many above have noted, Becker's materials are not always up to date. Unfortunately, I came to this realization WHILE taking the exam.

I did pass the other three sections with Becker on the first shot, so no complaints there. But when it comes to REG, I've not been too pleased.

[Author]

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