REG Study Group 2019

This topic contains 554 replies, has 99 voices, and was last updated by  74phoenix 1 day, 4 hours ago.

Viewing 30 posts - 211 through 240 (of 555 total)
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  • #2281743

    74phoenix
    Participant

    Determined to put more study time this week. @tncincy you in? I am envisioning going to California once I pass this last test!!

    AUD - 80
    BEC - 77
    FAR - 79
    REG - NINJA in Training
    Sick of having the CPA cloud hanging over my head. Need to get it and move on in life!
    #2282280

    Abe
    Participant

    I failed Reg when I took it this early march. I knew I failed since I was very unprepared with the sims. I hoped my MC would carry me, but nope. Becker really did help me prepare for the MC, just hoping ninja can help me prepare for the sims. Retaking it early april and hoping to get this over with.

    #2283081

    Tncincy
    Participant

    @74phoenix, yes I'm in. I have been battling a virus for a few days. Lord knows I can't be sick now it's still tax season, 🙁 . But while I lay in bed and ache, I am listening to the ninja audio, and reading my flash cards. I did come to work, but I am feeling really bad today. I think I am going to go home early and let my clerk make appointments the rest of the day. Hopefully, I am feeling better tomorrow. I am smelling like garlic….I put it in everything. Stay Healthy everybody and study hard.

    It begins with a 75
    Been here too long as a cheerleader.....time to pass
    #2283192

    74phoenix
    Participant

    @Abe GOOD LUCK! Keep going!! @tncincy wow, feel better!! Rest so you can give studying your all!

    AUD - 80
    BEC - 77
    FAR - 79
    REG - NINJA in Training
    Sick of having the CPA cloud hanging over my head. Need to get it and move on in life!
    #2283411

    CPA
    Participant

    Hello everyone!

    I am taking REG in about a week, and I was working on the AICPA sims. I am having a hard time on solving one of the testlet's 4 sims: Smith & Company CPAs- Form 1120 US Corporation Income Tax Return.

    1. Parcel of land @ Wayside Street, Greensburg- I am not understanding how we come up with the amount of $63,763.

    2. Color Copier–Looks like we are not considering the 11,000. Not sure why.

    3. Why are we not considering the extended two year warranty amount of $3500?

    Any help would be really appreciated! Thank you!

    #2283426

    CPA
    Participant

    Hello everyone!

    I am new to this forum and this is my first time posting, but looks like a great way to discuss about the most effective ways to study for the exam, and also give solutions to different questions.

    I am taking REG in about a week, and I was working on the AICPA sims. I am having a hard time on solving one of the testlet's 4 sims: Smith & Company CPAs- Form 1120 US Corporation Income Tax Return.

    1. Parcel of land @ Wayside Street, Greensburg- I am not understanding how we come up with the amount of $63,763.

    2. Color Copier–Looks like we are not considering the 11,000. Not sure why.

    3. Why are we not considering the extended two year warranty amount of $3500?

    Any help would be really appreciated! Thank you!

    #2283507

    CPA
    Participant

    Hi everyone!

    I am sitting for REG in about a week. I am working on the AICPA practice exam, and I am having a hard time on one of the simulations from testlet 4–Smith & Company CPAs.

    1. Land- How do we come up with a basis of land of $63,763?

    If anyone has solved this sims can you please share?

    Thank you very much!

    #2285781

    Tncincy
    Participant

    I have been waiting for my NTS to schedule my test for about a month. I found out yesterday that NASBA does NOT mail NTS anymore. How was I to know, go figure. I hope no one else is having this problem.
    I'm feeling much better today, still a little clogged up but no aches, no chills….much better. Back to study 🙂

    It begins with a 75
    Been here too long as a cheerleader.....time to pass
    #2286402

    MelonTea
    Participant

    Hi, new here and I'm a little confused and need help on the question below:

    Robin Drews, a single taxpayer, was divorced in 2018. Robin had the following income and expense items for 2018:

    Wages $55,000
    Alimony paid to former spouse 5,000
    Child support paid to former spouse 4,000
    Moving expenses 2,000
    Mortgage interest on personal residence 6,000
    Credit card interest 1,000
    What is Robin's total deductible itemized deduction amount for 2018?

    A) $11,000
    B) $8,000
    C) $7,000
    D) $6,000

    The answer is A for $11,000. I thought the answer was D for $6,000 since alimony paid to former spouse was not an itemized deduction on Schedule A. I'm not sure whether is answer is wrong or I'm missing something here.

    Thanks in advance!

    #2286408

    74phoenix
    Participant

    Hi @melontea, I believe it has to do with the new Tax Cuts and Job Act (TCJA) with the dates of the divorce being key here. The difference is pre-2019 divorces and 2019 onward divorces.

    I found an article about this: https://www.marketwatch.com/story/new-tax-law-eliminates-alimony-deductions-but-not-for-everybody-2018-01-23

    Take a read through and if you have additional questions let us know!

    AUD - 80
    BEC - 77
    FAR - 79
    REG - NINJA in Training
    Sick of having the CPA cloud hanging over my head. Need to get it and move on in life!
    #2286471

    MelonTea
    Participant

    @74phoenix Thanks for helping clear up the confusion. I think I got confused because I thought the question asked for what was included as itemized deductions for Schedule A only . I guess it included alimony even though it goes on schedule 1 because alimony can be deducted whether or not you itemize. The wording was tricky.

    #2286660

    74phoenix
    Participant

    @melontea I definitely agree that the wording is tricky. I don't like that they say “itemize” either.

    AUD - 80
    BEC - 77
    FAR - 79
    REG - NINJA in Training
    Sick of having the CPA cloud hanging over my head. Need to get it and move on in life!
    #2286765

    CH89
    Participant

    I agree, that wording is a bit tricky and deceiving. Paying alimony for a divorce prior to 12/31/18 would be a deduction in arriving at AGI, not an itemized deduction. While the mortgage interest would be an itemized deduction. Which review course is that question from? If you don't mind me asking.

    #2286903

    Tncincy
    Participant

    I'm with CH89. Alimony pre 2018 is taxable income, Post 2018 it is not. Mortgage interest and moving expenses pre 2018 is itemized deductions and post 2018 only mortgage interest. I think there is something missing in the explanation.

    On another note: Does anyone know where to find the score release dates? I'm trying to schedule my test and I really don't want to wait too long for score release.

    It begins with a 75
    Been here too long as a cheerleader.....time to pass
    #2286906

    Tncincy
    Participant

    @74phoenix, When are you taking Reg? anybody want to post their test dates? I'm trying to decide when to schedule, I certainly don't want to wait too long.

    It begins with a 75
    Been here too long as a cheerleader.....time to pass
    #2286909

    74phoenix
    Participant

    @tncincy Reading off my print out from AICPA:
    If you take by April 20th, score release is May 7
    If you take by May 15, score release is may 23
    If you take by May 31, score release is June 11
    If you take by June 11 score release is June 19

    My test is May 6.

    AUD - 80
    BEC - 77
    FAR - 79
    REG - NINJA in Training
    Sick of having the CPA cloud hanging over my head. Need to get it and move on in life!
    #2287089

    MelonTea
    Participant

    @CH89, The question came from the Surgent CPA review. I like to so far, but that question threw me into loop.

    #2287320

    Tncincy
    Participant

    I was gonna go for the 11th but I guess I can do a few days before. My son graduates with his masters in computer science from University of Arkansas-Pine Bluff. Yes, I am very proud. I went through so much with the registering and re-registering stuff. I got my NTS and it's on.

    It begins with a 75
    Been here too long as a cheerleader.....time to pass
    #2287824

    74phoenix
    Participant

    @tncincy Congratulations to your family!

    I am having trouble understanding “Basis of New Property” in Like Kind Exchanges.

    One of the formulas I see is:

    Adjusted basis of property given up
    + Gain recognized
    – boot rec'd
    + boot paid

    I understand Adj Basis of property given up + Gain recognized, but cannot wrap my head around why the boot received would be subtracted, and the boot paid added. Can someone explain?

    AUD - 80
    BEC - 77
    FAR - 79
    REG - NINJA in Training
    Sick of having the CPA cloud hanging over my head. Need to get it and move on in life!
    #2287884

    74phoenix
    Participant

    Also thought this is a weird rule in property transactions:

    Related parties (mother and son) – the son can sell the stock his mom sold him and using the original basis in the recognized gain calculation because he sold at an amount higher than both his cost basis and mom's basis?

    AUD - 80
    BEC - 77
    FAR - 79
    REG - NINJA in Training
    Sick of having the CPA cloud hanging over my head. Need to get it and move on in life!
    #2288091

    Tncincy
    Participant

    @74phoenix, I think the boot received or given is used in calculating the new basis of the property exchanged. Boot (cash or unlike property given or received).

    It begins with a 75
    Been here too long as a cheerleader.....time to pass
    #2288412

    Fen
    Participant

    Can anybody explain “holder in due course”? I just do not understand it. Thanks.

    #2288418

    74phoenix
    Participant

    @fen A holder in due course is someone who receives a check or negotiable instrument either directly from the payor or from the payee who passes it along to the holder in due course. I think it helps to think about a purchase of a home situation. The buyer of the home gives a check to the seller of the home, who then gives it to the bank. The bank is the holder in due course (holding the check). If anything is wrong with the check, the bank (holder in due course) has rights against the buyer, as long as the bank (holder) took the check for value, in good faith, without notice that anything is wrong with it

    AUD - 80
    BEC - 77
    FAR - 79
    REG - NINJA in Training
    Sick of having the CPA cloud hanging over my head. Need to get it and move on in life!
    #2289600

    asdf
    Participant

    In 2018, Jeff Sippy won $6,000 in a state lottery. Also in 2018, Jeff spent $1,400 for the purchase of lottery tickets. Jeff elected to take the standard deduction on his 2018 income tax return. The amount of lottery winnings that should be included in Jeff’s 2018 taxable income is?
    ——————————————————————
    The answer is $6,000 which I got wrong. I thought $0
    I know it should be included in GROSS INCOME, but the question is asking TAXABLE INCOME.
    so, I was confused.. I mean, if they are asking taxable income which is supposed to come after adjustments and standard deduction ($12,000)
    there is no taxable income, that was why i chose 0.. please help my understanding if i'm missing something here!
    Thank you

    FAR - Passed

    REG - Passed

    AUD - Scheduled for Aug/2019

    BEC

    #2291397

    CH89
    Participant

    It is asking the amount of lottery winnings that should be included, and the question does not specify what AGI is for 2018 for Jeff. I understand your confusion since it is asking taxable income, which can be read differently leading to a different answer. I believe this question is simply testing your knowledge and understanding of gambling winnings and losses, NOT how to arrive at taxable income. Hope this helps clarify.

    #2291889

    Tncincy
    Participant

    The winning amount is $6,000 included in taxable income. The winnings against the losses would be valid if he was itemizing. But the question says he chose the standard deduction. I think you are over thinking this matter. AGI has nothing to do with the question unless it asked to calculate more.

    It begins with a 75
    Been here too long as a cheerleader.....time to pass
    #2292093

    CH89
    Participant

    Yes, but what Asdf is referring to is calculating taxable income. Looking at Form 1040, the winnings would be included in income to arrive at AGI, then reduced by the standard deduction resulting in taxable income of 0. Of course, this is assuming that there is no other form of income.

    #2292117

    Tncincy
    Participant

    @CH89 I agree that the question is testing calculating winnings and losses. I understand, but does asdf have a better understanding of the correct answer to the question.

    It begins with a 75
    Been here too long as a cheerleader.....time to pass
    #2292486

    asdf
    Participant

    @tncincy
    @CH89

    thank you for your helps here!
    I know that entire winning amount should be included in gross income and it will be deducted up to the lottery loss by itemized deduction if s/he uses sch A but this person used std deduction which will lead to $0 of Taxable Income on lottery at the end.
    Right, It seems I was over-thinking this question 🙂
    I just thought that the wording of the question using TAXABLE INCOME is just not right..

    FAR - Passed

    REG - Passed

    AUD - Scheduled for Aug/2019

    BEC

    #2292588

    asdf
    Participant

    I mean “the loss will be deducted only up to the lottery winning” 😉

    FAR - Passed

    REG - Passed

    AUD - Scheduled for Aug/2019

    BEC

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