[jeff]

Welcome to the Q3 2016 CPA Exam Study Group for REG.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Anonymous]

Hmmmm. See what u r saying, doesn't appear to be a way to edit the username. I know there are mods around plus Jeff, so they may just catch it and fix it.

[Josh]

Hi REG Ninjas! I'm learning what's working since I'm new to Ninja's 10-point combo. I don't know how I've got this far, but I've done like 3000 questions in the 85 average range, yet my @ 120 sims are 20 points lower on the average. It just tells me I haven't really “Nailed the Concepts” or at least a good portion of them yet. This is probably reverse order, but I wonder if I can read the Ninja book of 450 pages quickly and take notes? If I do 50 pages a day or better starting with my weak areas, and take my exam when it's scheduled, do you think it will make a difference? I'm almost on schedule finally with my Gleim Study Planner, but that's 10 weeks plus a 2 week final review = 12 weeks. I sped-read Gleim's 800 pages last time. I hear Ninja is just as “robust”. Thanks. Just curious if I'm getting the right ideas for a possible strategy?

AUD - 75
BEC - 78
FAR - 76
REG - 80

Josh
“Focus on the future for 50%, on the present for 40%, and on the past for 10%." - Maasaki Hatsumi

[CPA2BEE]

@Dr Cash Thats awesome! I am an avid fisherman but 99% of the fishing I do is deep sea, so I actually wish I could do more freshwater stuff! Not to complain about deep sea fishing, its the sh*t 🙂 but it would be a lot of fun to change it up and have a lake or river around here with good fishing.

Anyway, back to REG everyone, I'm sure everyone is still up listening to Olinto or burning through MCQs right…..? 😉 You guys got this!

CA CPA - est. Dec 2016

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[PeiChieh Tsai]

Hey guys i have question regarding the question below. I understand how the calculation arrives to $3700 but I dont understand why it stated this trust would be a simple trust. I thought simple trust needs to distribute all of the DNI. For this question the DNI should be $4000-400=$3600, since they only distributed $1600, wouldn't it be considered a complex trust?

===============================================================

RR Trust had a long-term capital gain of $3,000 (allocated to corpus), taxable interest of $2,000 and nontaxable interest of $2,000. The trustee's fee was $400. The trust distributed $1,600 to beneficiaries. RR Trust is a simple trust. The trust's taxable income is:
A. $0.
B. $3,000.
C. $4,000.
D. $3,700.

Simple trusts (1) distribute all trust income ($1,600 in this question), (2) do not deduct charitable contributions, and (3) do not distribute trust principal. In addition, a personal exemption is allowed of $300 for a trust that is required to distribute all of its income currently (i.e., simple trusts).

According to IRC Section 265, expenses that are not related to a particular type of income (indirect expenses) must be allocated proportionately between taxable and nontaxable income. The trustee fee allocation is ($2,000 ÷ $4,000) × $400 = $200. The numerator of $2,000 is the nontaxable income and the $4,000 denominator is the total income included in trust accounting income and excludes income allocated to corpus. Also, the denominator includes gross income (if the amount is given), such as gross rental income, and not net rental income.

The same allocation applies to the deduction for distributions to beneficiaries (IRC Section 662). Since the beneficiaries received $1,600, it is assumed that half ($2,000 ÷ $4,000) of the distribution or $800 is from nontaxable income. The trust gets a deduction for the amount that the beneficiaries include in income.

The trust's taxable income is computed as follows:

Capital gain $ 3,000
Taxable interest 2,000
Trustee fee (1/2) – 200
Distribution (1/2) – 800
Exemption – 300
Taxable income $ 3,700
=======

[Anonymous]

ok. back to REG! today's gonna be my last day to cram i think so let's do this!

dang PeiChieh. good question. it's a little too early for me to dive in the IRC but here goes lol. looks like you can set aside some DNI for depreciation or to keep the corpus intact and still qualify for a simple trust. not sure if this is the reason or not… i'll probably just take their word for it on the exam and look out for ‘distributions of corpus' to indicate a complex trust…

https://www.law.cornell.edu/cfr/text/26/1.651(a)-2
§ 1.651(a)-2 Income required to be distributed currently.

The determination of whether trust income is required to be distributed currently depends upon the terms of the trust instrument and the applicable local law. For this purpose, if the trust instrument provides that the trustee in determining the distributable income shall first retain a reserve for depreciation or otherwise make due allowance for keeping the trust corpus intact by retaining a reasonable amount of the current income for that purpose, the retention of current income for that purpose will not disqualify the trust from being a “simple” trust.

[Just3Letters]

Hey guys, just a little update. Training at work is SUPER boring. Death by old accounting videos. From all the snapchats I get from friends, B4 does training right.

Anyways, I thought about this and figured I would let you know. Make SURE that you review the tax forms like M-1, M-2, and M-3 so you know what goes on them. Also, review all the 1040s, 1120s, etc. so that you at least know what is seperately and nonseperately stated.

Keep up the hard work! I started BEC yesterday so I'll see you over there maybe 🙂

AUD - 89
BEC - 80
FAR - 81
REG - 81

I hope my friends remember my name.

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Anonymous]

Or completely different stuff could show up than 3 letters is mentioning – I took the exam in early July. If you've taken FAR going back and redoing the permanent and temporary differences SIMS can be a great exercise in getting the Schedule M concepts down.

[csvirk]

For the current year, the AB Trust had DNI of $30,000, fiduciary accounting income of $50,000, and distributed $40,000 to beneficiaries. What amount should the sole beneficiary of the AB Trust report as taxable income from the trust?

A.
$0

B.
$30,000

C.
$40,000

D.
$50,000

AUD - 80
BEC - 86
FAR - 77
REG - 84

Hardwork will always pay off!

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Anonymous]

thanks guys, i'll definitely review the schedule M reconciliations and separately stated items. Just3, i'll see you on the other side in BEC 🙂

ughhh starting to get anxiety about the exam. i don't want to do all of this again!

[Teal]

@CPA2BEE how have you taken Ethics already? Don't you have to finish all 4 exams first? Or is this a state rule?

AUD - 82
BEC - 79
FAR - 75
REG - 77

NINJA & Roger

Passed AUD!

Passed BEC!

Passed FAR!

Passed REG!

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[LaidBackCPA]

Does anybody have a way to remember the differences between Sec. 1231, 1244, 1245, and 1250 assets and what section to apply the gain or loss when there is one?

Battling these exams with no accounting experience!

FAR 76-4/16
REG 64-6/16, 78-7/16
AUD 65-9/16, 68-10/16, 77-2/17
BEC 78-11/16

DONE!!!!!

FAR: 76 (4/2/2016)
REG: 64 (6/10/2016); 78 (7/12/16)
AUD: (9/2/2016)
BEC: (10/3/2016)

Studying for these exams with no accounting experience!

[csvirk]

Dove and Eagle formed a business entity in which they are equal owners. Dove contributed cash of $100,000, and Eagle contributed land with a basis of $40,000 and fair market value of $100,000. For its first year of operations, the entity had taxable income of $60,000 and made no distributions. At year-end it had outstanding recourse liabilities to third parties of $10,000. Eagle had a basis of $70,000 in the entity at the end of the first year of operations. What type of entity was formed?

A.
C corporation

B.
S corporation

C.
General partnership

D.
Limited liability company (LLC)

AUD - 80
BEC - 86
FAR - 77
REG - 84

Hardwork will always pay off!

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[melissahoff]

I am confused by this question.. How is Monk a holder in due course if they knew about the fraud in the first place?
————————————
Bond fraudulently induced Teal to make a note payable to Wilk, to whom Bond was indebted. Bond deli­vered the note to Wilk. Wilk negotiated the instrument to Monk, who purchased it with knowledge of the fraud and after it was overdue. If Wilk qualifies as a holder in due course, which of the following state­ments is correct?

A. (CORRECT ANSWER)
Monk has the standing of a holder in due course through Wilk.

Incorrect B.
Teal can successfully assert the defense of fraud in the inducement against Monk.

C.
Monk personally qualifies as a holder in due course.

D.
Teal can successfully assert the defense of fraud in the inducement against Wilk.
———————————————
Explanation: A holder in due course has accepted a negotiable instrument for value, in good faith, and without notice that the instrument is overdue or dishonored, has irregularities, or that any person has a defense against paying it. Wilk was a holder in due course because the instrument was acquired for an existing debt. Monk is a holder in due course because the instrument was acquired for a purchase. A holder after a holder in due course has all the rights of the first holder in due course. Monk is a holder in due course because Wilk was a holder in due course.

AUD - 74,72,74,73,67,80
BEC - 69,80
FAR - 50,51,50,74,71,79
REG - 69, 72, 81.. and I am DONE...
Ethics-93

[Anonymous]

it's the shelter doctrine — a non-HDC gets the rights of HDC if he received it from a HDC

[.]

So listed property is not eligible for section 179 expense?

FAR- 88- 6/16- (Ninja Avg. 74%)
REG- 89- 7/16- (Ninja Avg. 77%)
AUD- 95- 8/16- (Ninja Avg. 81%)
BEC- 82- 9/16- (Ninja Avg. 75%)
[Wiley CPAExcel + Ninja MCQ]

Finally licensed.

FAR - June 2016 - 88
REG - July 2016 - 89
AUD - Aug 2016 - review phase currently
BEC - Sep 2016 -

Wiley CPA Excel & Ninja MCQ

[Author]

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