REG Study Group January/February 2013
January 1, 2013 at 6:49 pm #401026
Can anyone confirm this for me?
I’m looking at the Bekcer MC for S-Corps and I had a question w/ the following information:
100% ownership of S-Corps
Beginning basis = 25,000
Ordinary income= 1,000
L-T Capital loss= 3,000
S-Corp cash distribution to owner: 30,000
How much of the 30,000 distribution is taxable to the shareholder?
I initially got the question wrong because I remembered that distributions were only non-taxable to the extent of basis (AFTER distributions are subtracted). Therefore, I thought that the taxable distribution would be:
25,000 + 1,000 =26,000 basis – 30,000 distribution = 4,000 distribution is taxable.
However, does the rule of the loss limitation only apply if the loss in question is an ordinary loss… not a capital loss?
The correct answer is 7,000 [(25+1-3)-30].January 1, 2013 at 7:07 pm #401027
The loss decrease the basis first then the income will increase it ,,, last step to calculate the capital gain :))January 1, 2013 at 10:12 pm #401028
What Section 179 dollar limitations are going to be on the exam for the first half of 2013?January 1, 2013 at 10:38 pm #401029
Good luck to Bucky and anyone else taking the exam tomorrow.January 2, 2013 at 2:31 am #401030
Thanks, meatball!January 2, 2013 at 2:50 am #401031
did any one notice Becker final exam no2 is so hard !!? i remember doing Aud and Far final exam an they were not that much hard like the REG?January 2, 2013 at 3:18 am #401032
Wait til you get to the 2nd BEC test and your confidence will just die. That one was probably the worst test i have ever taken with Becker lol. I seriously got like 60% total right on Becker’s 2nd BEC test
I only took about 1/3 or so of Becker’s 2nd test so far (didnt want to stay up all night doing the test lol) and i noticed there were alot more BLAW questions. I did think that the test was slightly harder (so far) then the first one.
Dont let Becker’s test kill your confidence tho. Like i said previously, some of Becker’s tests are significantly harder then even what the actual exam is. You did well on FAR and AUD, follow those same steps you took when prepping and you should set yourself up pretty nicely.January 2, 2013 at 3:43 am #401033
oh god! thanx that someone sharing me the same thoughts,, am trying to go over each questions now and the good thing about is there a very good explanation for each .. so it go like a revision in the tricky area
one day left and i hope this reg nightmare just endJanuary 2, 2013 at 4:23 am #401034
How much is the casuality loss deductible for 2011 and 2012? is that $100 or $500.
ThanksJanuary 2, 2013 at 4:35 am #401035
The AICPA released questions… are they pretty comparable to the real thing?
I’m guessing not because it seemed too easy. I got 35/40 on the MC and did pretty well on the SIMS.
I’m ready to go to bed and dream of 75’s. 🙂January 2, 2013 at 4:35 am #401036
@ CPA FOR MOM
$100.January 2, 2013 at 4:39 am #401037January 2, 2013 at 5:12 am #401038
@ CPA FOR MOM
it 10% from AGI + 100January 2, 2013 at 5:50 am #401039January 2, 2013 at 6:52 am #401040
Trish is a promoter for Alpha Corporation. Generally, Trish is personally liable for any pre-incorporation contract until Alpha:
a) Assumes the pre-incorporation contract by novation
b) Ratifies the contract
c) Releases Trish from liability
d) Rejects the contract
Choice a) is correct. In a novation, a new party is substituted for the old party. All parties must agree to the novation.
Choice c) is incorrect. The corporation does not have the power to release Trish; the other party in the contract must agree to the release as well.
So let me get this straight — c) is wrong because the third party needs to also agree to the release and a) is correct despite the fact that the third party also needs to agree. Gotta love this stupid examJanuary 2, 2013 at 12:46 pm #401041
The reason A is right is because for a NOVATION to occur ALL parties must agree to the release. Therefore in this problem Trish, The creditor, and the Corporation agree that Trish is no longer liable.
The reason C is WRONG is because ALPHA (the corporation) is assuming her debts and “releasing” her from them. However, she isnt being released by the actual creditor because Alpha is not the third party creditor. The creditor is not agreeing to this. So answer C is basically just an assignment of liability. In an assignment of liability the third party creditor still can hold the assignor or assignee responsible for the debts.January 2, 2013 at 7:36 pm #401042
REG scheduled @ Jan 19. So far, almost finished Becker R1..
I need a Miracle~
NTS will expire on Feb 20. 2 subjects not scheduled yet……January 3, 2013 at 12:25 am #401043
My exam is after few hours and still I have problem with corporation formation and non like kind exchangeJanuary 3, 2013 at 12:40 am #401044
What do you mean a none like kind exchange? Can you give an example, we might be able to help.January 3, 2013 at 12:40 am #401045
You are just starting to study for REG and you have 17 days til your test?January 3, 2013 at 8:33 pm #401046
Thanks for the clarification.
I finished the lectures and readings woooo. Everything is done, I’m just finishing up R7 Optional Questions. To be honest, they are absolutely embarrassing me and obliterating my confidence. I don’t know how anyone enters this test feeling confident. I barely remember any tax at this point and I’m still getting a business law beatdown. I have a lot of work to do in the next 11 days.January 3, 2013 at 8:37 pm #401047
This is how I feel at this point in a nutshell. I can answer basic multiple choice questions on every topic and do so with flying colors. But the second Becker, or the exam, pulls some cowboy move and starts asking questions like in these optional banks then I’m a dead man.January 3, 2013 at 9:45 pm #401048
That means you feel like the rest of us…you are normal, then…;-)))January 4, 2013 at 2:06 am #401049
I’m starting my quest for REG. I’m wondering if I should purchase Becker REG Final Review. Any suggestions.. Maybe I should just use the Wiley book to supplement.
Help:)) Thanks in advance
Memphis WannabeCPAJanuary 4, 2013 at 2:17 am #401050
I finish my Roger lectures tomorrow! Two days off then 8 days of 8-10 hour days of review. 1 day for each chapter, then 2 days of multiple choice nonstop. Ugh, have done about 350 MCQ on Wiley testbank already, so around 900 to go there, then the Wiley book homework. My life is so fun.January 4, 2013 at 7:51 am #401051
Had done with the reg yesterday
For the first time it happened I got 2 research data base questions it really make me happy :)) the sim were easy generally except for one question that I had not go througth it before ! Don’t know if it’s ok to mention the topic ?
The m/c ,the 1st and 3rd sections were kind of easy , the 2ed was difficult
Good luck all ,, in 2 days I will move to BEC group studyJanuary 5, 2013 at 2:36 am #401052
I just started an online Becker course today. Is Feb 28 to soon to schedule? The course is set to end Mar 17, but I can work ahead.I will have about 15 hours per week to study. Working full-time in public accounting and taking care of my family. I have 13 years of tax experience. My other option would be taking the exam in April. I’m usually dead tired by April.January 5, 2013 at 2:52 am #401053
I think you should be pretty good if you stick to your schedule. I have a year of tax experience and i do see a little overlay of what i do and what is on the test. That being said dont take the tax area lightly, there are a bunch of things that i dont really see alot at work. just something to note, you might be different.January 5, 2013 at 11:51 pm #401054
Hi Everyone. I’m planning on taking reg on Feb but have been studying from the 2012 Becker material. On the lectures, they say that phase out amounts won’t be tested on the exam because these numbers change every year. Does this apply for credits and deductions as well?
Also, now that the payroll taxes and the income tax bracket is different for FY 2013, given recent news, do we need to take that into consideration as well?
Can I still use my 2012 becker? This is my last exam and I don’t want to spend money on new becker material again.
Thanks in advance.January 6, 2013 at 12:47 am #401055
I would imagine you will be fine. Even when you study the released questions becker has not many of them have specific numbers or phaseouts. I would just know that something is maybe phased out.
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