REG Study Group January/February 2013

CPA Exam Forum REG REG Review REG Study Group January/February 2013

This topic contains 391 replies, has 102 voices, and was last updated by  Soon2BCPA127 4 years, 7 months ago.

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    Hey everyone, just checking in to see how things are going. This is my third attempt at REG, I flew through Professional and legal responsibilities with great scores on the MCQ, and sims from the book. To all the becker students here, you may want to consider getting through all the b law topics before attacking the tax topics. This way on exam day, the tax topics are the freshest in your mind.



    Joining the group. Started studying for REG yesterday.

    Failed it in July but have passed the other three.

    Ready. Set. Go. 🙂



    I'm scheduled to take REG on Jan 19. I chose that date because it is the last day of the first “scoring window” so I shouldn't have to wait too long for my score.

    This is the last section I need, so I'm really hoping I can pass it on the first try and be done!

    I have been working for a small tax firm for the last 5 years and I think that experience might finally come into play on this section as it has helped very little on the prior sections.

    Anyway, good luck to my fellow REG testers! We can do this!



    1/3 done with Roger lectures. Doing 3 hours of notes tomorrow on my flight home. Yippee



    Just got news I passed BEC. Now for a rematch w reg. I have my nts but haven't scheduled.

    I'm thinking sometime mid January. Plan of attack is to do multiple choice and sims like a mug. Also I'm considering purchasing the 10 point package.

    Does anyone know if the ninja audio notes are the same as the written notes but just in audio form?


    Nice, congratulations.

    Being totally new to the CPA exam game, I really am never sure what I'm supposed to know and not know. For example, this was part of the Becker homework for tax exempt entities:

    Which one of the following types of organizations qualifies as an organization exempt from income tax?

    a. All “feeder” organizations, primarily conducting business for profit, but distributing 100% of their profits to organizations exempt from income tax.

    b. An “action” organization established for the purpose of influencing legislation pertaining to protection of animal rights.

    c. An organization whose purpose is to foster national or international amateur sports competition by providing athletic facilities and equipment.

    d. A social club organized and operated exclusively for the pleasure and recreation of its members, supported solely by membership fees, dues, and assessments

    D is correct. I was curious to see why C was wrong and Google got me to this:

    The Tax Reform Act of 1976 amended IRC 501(c)(3) to exempt from federal income taxation organizations organized and operated exclusively to foster national or international amateur sports competition, provided they do not furnish athletic facilities or equipment. The statute was amended in 1982 by adding IRC 501(j).

    Geeeez there was no mention of that specific thing in Becker. Is anyone supplementing their studies with reading the code/regs? I do have an amended version in my house from school. Is stuff like this fair game and what can I do about it?



    Things like that pop up. That is why I like Wiley testbank, fills in the holes a review course may not have gone in deep about. I use Roger books and supplement with Wiley.




    I actually remember this question exactly. It does actually say in the Becker book about those specifically when explaining the in general section 501(c)(3) it states: “This type of corporation includes a community chest; a community fund…….. or a foundation organized to foster national or international amateur sports competitions (only if none of the activities involve the providing of athletic facilities or equipment)” on page R3-60 if you have the 2012 book.

    Regarding the Becker questions, I have found they pretty much almost always answer the question in the book or lectures. You just have to look super carefully sometimes. But regarding the exams, there will be things that you don't have specifically in the Becker if you memorized every word and you have to narrow them down by weeding out what you do know on the concepts to find out whats right. If it hadn't said that in the book, you do know that the fees and dues are exempt income, so the social club will be tax-exempt, so if you don't know the other options, you do know that this one is tax-exempt, so it will most likely be the right answer.



    So like, is it normal for people to spend a lot of time on R-3 of Becker? I feel like I am spending a lot of time on the multiple choice in this section. Does it get any better as I go through the material? Thanks



    This is the one section where Wiley let me down; I think it didn't cover a lot of the nuances that tend to end up on the test. If you go through the details methodically over time, you will at least see everything you need to, and hopefully you have a better memory than I do. Other than that, I don't know that I can say much specifically about what gets tested lest the AICPA get mad??

    I would go through more practice sims on this one as well. Even if you don't do all of them, at least make sure you know the concepts they're testing. Lastly, I really like mnemonics for this section. There are a lot of random things that don't really bow to logic; being a good guesser doesn't go as far on this one. They're usually pretty easy to make up even if your study materials don't give them to you.


    Does anyone know what kind of changes are going to take place for REG during the first testing window in 2013. I'm planning on re-taking REG early January and I am using Becker 2012. I don't want to buy new material so I'm hoping there will not be a lot of changes this first window. Also, what tax rates will be in effect?




    R3 was the most difficult for me the first time around and were I was weakest on the exam. Ill be spending a lot of time in that chapter for this retake.




    Thanks, i will definitely study the mnemonics more.. Hopefully year of experience in tax will help me through it…

    Does anyone know how much BLAW will be covered on the exam… I know Becker says like 17-23% or something like that but in all their practice tests they dont seem to put a big emphasis on it.



    @mrwills I heard that it's like 20-30% actually … HOWEVER, I haven't taken it yet, just from what I've read on here… everyone says “do not neglect biz law!”

    I find it not too terrible, something I can actually remember well…. but that's just from my initial studying.



    @mrwills – When I took REG I felt like the multiple choice were pretty evenly split between Business Law and Tax. Mostly on contracts, sales, securities regulation. I don't think I got anything really on things like agency and bankruptcy. That was just my experience though!



    Cardea, how about the SIMS? is BLaw tested in SIMS?



    I would imagine that anything is possible in the sims… for BLAW i could definitely see something like discharge on debts what creditor gets what amount of money.



    @Happen4reason- there aren't any changes to the CSO for regulation in 2013. However, you should take note that any tax law in effect within 6 months before your test date is considered testable material.

    @mrwills12- you can find the current CSO on the AICPA website. Business law makes up 17-21% of the exam material. In the past, I have found that the CSO accurately represents the balance of topics covered during the exam.

    @pinaycpa Business law is definitely testable on the sims, however, you are more likely to be tested on tax related material in your simulations. I would give more information but it would go into the release of previous test material and I won't do that!



    Hi everyone. I have a question (might be an easy one!) that I would really appreciate some explanation on. I just flew through my review homework for C-Corps and S-Corps (90%+ correct on both)…but am struggling with probably the easiest topic in Becker's R-3 (Exempt Organizations)… This question in particular has me a bit stumped.

    Which of the following activities regularly carried out by an exempt organization will not result in unrelated business income?

    (a) Sale of laundry services by an exempt hospital to other hospitals.

    (b) Sale of heavy-duty appliances to senior citizens by an exempt senior citizens center.

    (c) Accounting and tax services performed by a local chapter of a labor union for its members.

    (d) The sale of a trade association of publications used as course materials for the association's seminars, which are oriented towards its members.

    The correct answer is (d). I answered (c) and am still unclear why (d) is the correct answer.

    Thanks for any help! Happy studying!



    Not positive, since I haven't gotten that far yet in my REG studies, but I would assume answer D is correct because that activity is related to the purpose of the organization, thus not qualifying as “unrelated business income.”



    Heads up on using 2012 material – Section 179 did change




    I think it's kind of silly that they test on such subjects as S179 which change from year to year. I think it would be better to test on the general principles of taxation. For example, test our understanding of the concept of accelerated depreciation, but not the specific annual limit as it applies to the one year we took the exam. After all, that's what CPE is for…



    Well do we need to know the exact dollar amount of 179 or the concept of it and the rules of it? Wouldnt it be pretty costly to keep changing the test every year for 179? Plus you have 50% bonus depreciation for 2013? Which number are we going to have to know then for 2013? is it that it is 125,000 indexed for inflation or is it the 139,000 (which is the 179 after it is indexed for inflation)?



    Got 2 weeks before my REG exam, any topics that I should definitely focus more on?



    I'm at three weeks from today. Halfway done with videos after today. The next four days are all review/note taking/multiple choice. REG 3 sucks!!



    Quick question in regards to R1 capital gains and losses…

    From my understanding, a capital asset = real and personal property held by the taxpayer NOT used for trade or business. Now as Becker illustrates, there are several capital gains that you don't have to include into gross income a.k.a the “HIDE IT” acronym. The “E” of the “HIDE IT” acronym is Exchange of Like-Kind Business / Investment assets. the criteria to constitute a like-kind exchange are:

    1. Tangible real or personal property


    3. Held for investment

    So if you can see where I'm going with this…doesn't the gain on exchange of like-kind business/investment assets not constitute a capital gain because it is FOR business purposes…? All help is greatly appreciated.



    I think you are thinking about this a little wrong. To not have a taxable gain you HIDE IT, the E (Like kind exchanges) are exchanges of property that you held either for business purposes (owning tow trucks)/investment. You in turn have to receive similar property. Basically the IRS says that if you trade something that is for the same purpose you had the original asset as, you can defer the gain provided you did not receive boot so long as it is used in business and not inventory or it is used as an investment. If you trade something for another thing and those assets are nearly identical, did you really gain from it? That is why you just roll your basis over and subsquently when you sell the asset you have a lower basis and ultimately recognize the defered gain.



    Thanks man,

    What you said kind of clarified it for me as i went back to look up what it said….

    the criteria are:

    …..2. USED IN TRADE OR BUSINESS OR (i missed the OR)

    3. Held for investment

    thus constitution capital gains

    ….thanks again for the timely response. best of luck on your last part.



    Hey CPA candidates,

    Does anyone know if we have to memorize Tax form numbers and what each is used for in terms of multiple choice and sim questions.


    So I've completed Becker R1-R4 and all of the assigned homework. I'm not scheduled to start R5 until Monday. I'm feeling pretty crappy about my long-term memory on some of this stuff. My homework grades have been solid, but I'm a worrier. What do you guys recommend at this juncture?

    1) Wrap-up all tax material this weekend by redoing all homework

    2) Wrap-up all tax material by re-reading and doing trouble areas

    3) Move on to Business Law so I have more time to do a final review before the exam

    I'm really considering getting the Wiley test bank. It's a pretty big investment for me at the moment. Naturally, I have to get all four sections because REG alone is 87 dollars and the whole package is cheaper than buying three individually.

    PS: I hate trusts and estates

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