REG Study Group – Q2 2018

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  • March 20, 2018 at 10:13 am #1742996
    Anonymous
    Inactive

    Who’s ready for REG?

    I AM!

    I’ve scheduled my test date on 6/9, Saturday. I wish there’s a 6/10 open date within our area, but there’s none.

    March 20, 2018 at 1:41 pm #1743462
    vorobjeva44
    Participant

    Hi Amor, I am with you! 🙂 I failed with 73, need to improve Entity Taxation part as all others I studied well, lol 🙂

    AUD - 77
    BEC - 75
    FAR - 82
    REG - 81
    Don't be upset with the results you didn't get from the work you didn't do.

     

    March 20, 2018 at 1:45 pm #1743473
    vorobjeva44
    Participant

    Alan, Baker, and Carr formed Dexter Corporation during 2017. Pursuant to the incorporation agreement, Alan transferred property with an adjusted basis of $30,000 and a fair market value of $45,000 for 450 shares of stock, Baker transferred cash of $35,000 in exchange for 350 shares of stock, and Carr performed services valued at $25,000 in exchange for 250 shares of stock. Assuming the fair market value of Dexter Corporation stock is $100 per share, what is Dexter Corporation's tax basis for the property received from Alan?

    $0

    $30,000

    $45,000

    $65,000

    Answer is 45,000

    Why we used FMV to find Corp's Basis? What is the rule?

    AUD - 77
    BEC - 75
    FAR - 82
    REG - 81
    Don't be upset with the results you didn't get from the work you didn't do.

     

    March 20, 2018 at 4:20 pm #1743821
    Aqua Maheen
    Participant

    Maryna-I believe that if you transfer property to a C-Corp, it is transferred at FMV-someone correct me if I'm wrong.

    AUD - 66,
    BEC - 77
    FAR - 79
    REG - 63,
    Never give up!
    March 20, 2018 at 4:42 pm #1743884
    vorobjeva44
    Participant

    If it is not control group (less 80% ownership) – then it is taxed at FMV 🙂 Found it at Roger Cram.

    https://c.radikal.ru/c25/1803/5b/453bc9a992e0.png

    AUD - 77
    BEC - 75
    FAR - 82
    REG - 81
    Don't be upset with the results you didn't get from the work you didn't do.

     

    March 20, 2018 at 6:23 pm #1744029
    Anonymous
    Inactive

    Hi team, reporting in for the Q2 2018 group!
    Passed FAR on 2/7 – 77 (first attempt)
    Passed BEC on 3/10 – 79 (first attempt)

    Now gonna tackle REG first, and then AUD, both in 2Q18. Using Wiley CPAExcel, but strongly considering purchasing NINJA for this test, as I know I'll struggle with tax a bit.

    Hope to hear from the rest of the 2Q18 crew!

    March 20, 2018 at 9:43 pm #1744392
    vorobjeva44
    Participant

    Is anybody planning to practice Gleim sims?

    AUD - 77
    BEC - 75
    FAR - 82
    REG - 81
    Don't be upset with the results you didn't get from the work you didn't do.

     

    March 20, 2018 at 10:13 pm #1744400
    vorobjeva44
    Participant

    https://a.radikal.ru/a29/1803/09/f5b3052d5378.png
    Guys can somebody explain last two paragraphs?
    As I understood: if AB of transferred property higher than FMV => transferor AB limited to FMV , like AB=10, FMV=7, so AB of transferor limited to 7.
    But what is happening with 3k of AB that was reduced? I do not understand this moment… 🙁

    AUD - 77
    BEC - 75
    FAR - 82
    REG - 81
    Don't be upset with the results you didn't get from the work you didn't do.

     

    March 20, 2018 at 10:53 pm #1744425
    spandey27
    Participant

    If i am not wrong, you just ignore $3K. Basically, this will prevent built in losses to corporation. So if AB is greater then FMV, the basis of the corporation is limited to the FMV. Think of this as Built in losses are not allowed in corporations.

    SP
    March 20, 2018 at 10:58 pm #1744427
    spandey27
    Participant

    Alan, Baker, and Carr formed Dexter Corporation during 2017. Pursuant to the incorporation agreement, Alan transferred property with an adjusted basis of $30,000 and a fair market value of $45,000 for 450 shares of stock, Baker transferred cash of $35,000 in exchange for 350 shares of stock, and Carr performed services valued at $25,000 in exchange for 250 shares of stock. Assuming the fair market value of Dexter Corporation stock is $100 per share, what is Dexter Corporation's tax basis for the property received from Alan?

    $0

    $30,000

    $45,000

    $65,000

    Answer is 45,000

    Why we used FMV to find Corp's Basis? What is the rule?

    ANSWER: for this- the other way to do this is =>

    corps basis = Gain recognized by the shareholder + Adjusted basis of the property transferred

    Gain recognized = FMV – AB = 45K- 30K = 15K
    AB = 30K

    15k+30k = 45K.

    Let me know if you disagree. As i am learning myself.

    SP
    March 20, 2018 at 11:00 pm #1744428
    spandey27
    Participant

    Maryna, for your Corp basis question's answer.

    For this- the other way to do this is =>

    corps basis = Gain recognized by the shareholder + Adjusted basis of the property transferred

    Gain recognized = FMV – AB = 45K- 30K = 15K
    AB = 30K

    15k+30k = 45K.

    Let me know if you disagree. As i am learning myself.

    SP
    March 20, 2018 at 11:04 pm #1744433
    vorobjeva44
    Participant

    spandey27

    This is how Wiley explain it:

    The requirement is to determine Dexter Corporation's tax basis for the property received in the incorporation from Alan. Since Alan and Baker are the only transferors of property and they, in the aggregate, own only 800 of the 1,050 shares outstanding immediately after the incorporation, Sec. 351 does not apply to provide nonrecognition treatment for Alan's transfer of property. As a result, Alan is taxed on his realized gain of $15,000, and Dexter Corporation has a cost (i.e., FMV) basis of $45,000 for the transferred property.

    AUD - 77
    BEC - 75
    FAR - 82
    REG - 81
    Don't be upset with the results you didn't get from the work you didn't do.

     

    March 20, 2018 at 11:09 pm #1744445
    spandey27
    Participant

    gotcha thank you 🙂

    SP
    March 21, 2018 at 7:22 am #1744629
    Defo
    Participant

    I am liking the Q2 REG discussion so far! I am scheduled for April 23rd and REG is my last exam. Im using wiley and Becker.

    AUD - 83
    BEC - 84
    FAR - 78
    REG - 92
    March 21, 2018 at 8:39 am #1744787
    Kat
    Participant

    Question for those retaking REG, what is more worth it, buying Becker Final Review ($165), or buying another study software portion for REG only, such as Wiley, Gleim (MCQ test bank only), or Roger? I already plan on paying for monthly Ninja access as I clearly did not succeed with Becker alone (my license expires this week, and I have failed REG twice in the last 6 months). I just want to invest in the best combination as my FAR score expires in September and I have two shots left to pass this last part.

    AUD - 76
    BEC - 80
    FAR - 75
    REG - 73
    Putting one foot in front of the other...I know this will all be worth it, right?  CPA dreams for 2018 licensure 🙂
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