August 3, 2019 at 11:41 am #260297775Participant
I need some help with these questions pls.
In Bankruptcy rules, does the The 2 and 3 year tax priority rule concern only Income Taxes or also other types of taxes?
Also, does this mean that the tax gets discharged in bankruptcy if older than 3 years and filed at least 2 years before filing for bankruptcy?
ThanksAugust 3, 2019 at 11:54 am #260300775Participant
In Bankruptcy: What happens to payments voidable (set aside by the trustee)?
Does the creditor who received that money need to pay it back to the bankruptcy trust and get in the line as a general creditor?
thxAugust 3, 2019 at 4:38 pm #2603766August 23, 2019 at 10:02 pm #2652552se7en.14Participant
Does anyone have a good method of learning the different items for book/tax differences (M1 M3 schedule)? there are just so many and how do i know if I should add/subtract it?
How are you guys studying for this topic?
thanks!August 24, 2019 at 7:23 am #2652879KeepPushingParticipant
@Se7en.14 I just studied for it and it confused me too. I used Becker. not sure which you have but what I noticed is that the questions, specifically the Sims, would ask them in a different way, for example, they wanted me to take out the whole depreciation and then put what was allowed for tax purposes or other times they wanted me to just simply put the difference in depreciation so if the company took out too much I'd take away from it or add from it if they had taken too little. SO I had to really think about how the question was laid out. I suggest looking the actual M-1 tax form it helped me a lot to see a visual of how it actually is asked so I can have a strong base understanding of it. I focused on knowing the ones that they always seemed to test me on becker like depreciation charitable contributions, and just the ones that are shown on M-1 which aren't as many so if I mastered the ones on the M-1 I felt like I could work my way around others.August 24, 2019 at 10:09 pm #2654814bigstakkParticipant
Question about AMT- is this tested for individuals after Q2 '19 since it is not applicable for returns filed for tax year 2019?August 26, 2019 at 1:38 pm #2658318bigstakkParticipant
Sorry- meant *corporations not individuals.August 29, 2019 at 3:54 pm #2665206BobsacajawillieParticipant
Can anyone help with this question. I can't figure out why they would allow John's expenses to be itemized being that he is 26 and makes more than $4,200. Thanks,
During 2019, Mr. and Mrs. Benson provided substantially all the support, in their own home, for their son John, age 26, and for Mrs. Benson's cousin Nancy, age 17. John had $6,000 of income for 2019, and Nancy's income was $2,500. The Bensons paid the following medical expenses during the year:
Medicines and drugs
For themselves $400
For John 500
For Nancy 100
For themselves 600
For John 900
For Nancy 200
What is the total amount of medical expenses (before application of any limitation rules), that would enter into the calculation of itemized deductions on the Bensons' 2019 tax return?
This Answer is Correct
Deductible medical expenses include those incurred by a taxpayer, taxpayer's spouse, dependents of the taxpayer, or any person for whom the taxpayer could claim a dependency exemption except that the person had gross income of $4,200 (2019) or more, or filed a joint return. Thus, the Bensons may deduct medical expenses incurred for themselves, for John (i.e., qualifies for exception of no dependency exemption only because his gross income is $4,200 or more), and for Nancy (i.e., a dependent of the Bensons).August 29, 2019 at 4:25 pm #2665245TncincyParticipant
The answer to your question is in the answer. Because john is a relative, and lived with his parents, the parents can claim his medical expenses. I think, I am sure there is another reason. But this is the more obvious reason to the why.September 3, 2019 at 7:12 pm #2677146se7en.14Participant
I'm doing MCQs and coming across questions on AMT about which deductions are added back to reg income tax. For example- real estate and state income tax is added back. I'm using becker and don't see where this is in the book. or maybe i'm just not understanding AMT…
Is there a list somewhere that I should know these deductions under only AMT?
Thanks.September 8, 2019 at 6:10 pm #2691768Captain AwesomeParticipant
I am beginning to study for REG, my last section, but I'm having trouble figuring out where/how to start. It took four tries to conquer BEC and FAR so I felt very comfortable with the material by the time I finally passed, having studied and tested so many times. AUD I passed on the first try with two months of studying, but I thought that 20% of it was common sense and there is an order to auditing so I just started at the beginning and everything built from there.
REG is beginning to remind me more of BEC and FAR in that it's a lot of random stuff in no particular order. I don't want to take REG mulitple times so I ask, what strategies did you use to grasp all the material? My current plan is to watch all the plus videos and then begin MCQ using the book and notes as reference. I tried reading the book right away, but boy is it dry.October 7, 2019 at 12:20 am #2740899MIchelleParticipant
I am not sure if this is still active or not… but this is my 3rd attempt into REG after taking time off from studying. I recently passed BEC with a 79 and using Becker material. Any tips or anything I should focus on? Or lead me to the right study group for REG?
Thanks!October 7, 2019 at 12:50 pm #2741478KostasParticipant
For those who are scared the Mock Exams. I don't know if this will help you but I must share my story. I've been using the Becker CPA review.
For FAR, I scored 51%, 57%, and 51%. I passed with 75.
For AUD, I scored 60%, 62%, and 63%. I passed with 78.
For REG, I scored 28%, 52%, and 50%. I passed with 76.
Moral of the story: Don't let Mock Exams to let you down. They're more difficult compared to the real test, you should not be disappointed by a bad score.
Good luck everyone!!October 12, 2019 at 2:57 pm #2749065lascielsParticipant
Can someone explain what is Unreasonable Position? I have reading Becker's text book over and over again and did some research online, but I still could not understand the meaning of this term.
THank you!October 16, 2019 at 8:54 am #2753682AmberParticipant
I've heard a lot about people skipping REG lectures in Becker to just read the material instead for time saving. I just started, work full time, and sit December 9th. Has anyone had luck with this?October 21, 2019 at 11:15 am #2760654olabisiolayinkaParticipant
I plan on taking REG on November 30th. This will be my first attempt at REG and it is also my final exam. I am using BECKER. Any advice?October 21, 2019 at 2:08 pm #2760852ineedthiscpa45Participant
Taking Reg nov 2nd, first time taking itOctober 22, 2019 at 4:31 pm #2762445JamesParticipant
Study study study Individual taxation (all of it). Always a SIM it seems on it. Know partner basis changes. Blaw/Ethics feels like Govt accounting in FAR on the exam…. basically it feels like it is half the MCQs.
Taking the exam Monday… Passed it back years ago but I'm sure much has changed. Hopefully there is not too much QBI deductions on it.October 23, 2019 at 9:37 am #2763255olabisiolayinkaParticipant
Thanks @James. I wish you all the very best. I pray you pass and have time to enjoy your family.November 4, 2019 at 1:39 am #2778357MercenaryParticipant
Just finished the exam. Felt I did mostly okay on MCQs, flew through them pretty quick. Whole exam took 3 hours. But I know messed up totally on at least 1 TBS, like guaranteed I missed half of the points on it at best an most likely most of the points. Hopefully the other TBS and MCQs balance it out.
Ill just say that its a good idea to know basis very well along with the differences between how liquidating/non liquidating distributions are handled among different business structures.November 5, 2019 at 11:41 pm #2782203April94Participant
Hi all! I will be studying for REG soon and was wondering how everyone studied? I passed FAR and AUD and was going to use the same study techniques for REG, but wanted to see if anyone had any other tips/tricks to studying/passing REG! I have heard it is a beast…November 11, 2019 at 8:49 am #2790198
Hi all, I'm back again for another attempt at REG…. @April94, good luck! It is crazy. I recommend as many MCQ as possible so you can drill the rules into your head. B
Can anyone help me understand Becker's CPA-02280 question? It's about section 1245 depr recapture and 1231 gain/loss. I just don't know how to figure out what is 1245 depr recapture or not….November 11, 2019 at 8:56 am #2790222Jeff Elliott, CPAKeymaster
How was everyone's study weekend?November 11, 2019 at 8:57 am #2790228November 11, 2019 at 11:37 am #2790477
Wally Inc. sold the following three personal property assets in Year 6:
Asset Purchase Date Cost Accumulated Depreciation Selling Price
A 5/1/Year 3 $5,000 $3,000 $2,300
B 8/13/Year 4 $1,200 $500 $2,000
C 2/18/Year 4 $3,800 $1,800 $1,500
What is Wally’s net Section 1231 gain or loss in Year 6?
A. $500 loss
B. $300 gain
C. $800 gain
D. $1,600 gain
Choice “B” is correct. All of these assets are Section 1231 assets. The gains and losses
are as follows:
Asset Selling Price
Recapture 1231 Gain/(Loss)
A $2,300 $2,000 $300 $300 $0
B $2,000 $700 $1,300 $500 $800
C $1,500 $2,000 ($500) $0 ($500)
Each of the gains are subject to Section 1245 recapture up to the accumulated
depreciation. The remaining gains and all losses are Section 1231. The net Section
1231 is a $300 gain ($0 + $800 – $500).November 11, 2019 at 7:46 pm #2791392CH89Participant
@74phoenix – I'm going to try and explain this the best that I can! When we look at Asset A, we know it has an accumulated depreciation of $3,000, and a gain of $300. Per Section 1245, we are going to recapture the gain up to the accumulated depreciation amount. Any excess of that amount will go under Section 1231. So the gain of $300 does not exceed the accumulated depreciation for Asset A, making the entire gain Section 1245. Let's look at Asset B. The accumulated depreciation for Asset B is $500, and we are recognizing a gain of $1,300. The gain on Asset B exceeds accumulated depreciation by $800. So, for Asset B, $500 will be Section 1245, and the excess which is $800 is going to be Section 1231. For Asset C, since we have a loss, the entire loss will be recognized as Section 1231, giving us a Section 1231 gain of $300. The big picture here for Section 1245 is to compare the accumulated depreciation and the gain on the sale of the asset. If the gain exceeds the accumulated depreciation, that excess amount is going to be Section 1231.
I hope this helps. Please let me know if anything needs more clarification.November 13, 2019 at 7:56 pm #2794680
THANK YOU SO MUCH! Will have to write that down. Good to hear from you 🙂November 15, 2019 at 4:44 pm #2797149
How we feeling guys?November 17, 2019 at 10:37 pm #2799798AshSpectator
Keep it up!November 21, 2019 at 12:10 pm #2805027
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