Exam (elaborations)
CPA Reg 2024 Questions with solutions
- Course
- Institution
Exam of 10 pages for the course CPA at CPA (CPA Reg 2024)
[Show more]
Content preview
CPA Reg 2024- answer
Refundable Tax Credits - answerChild Tax Credit
Earned Income Credit
Federal Income Tax Withheld
Excess Social Security Withheld
American Opportunity (40% refundable)
Penalty for underpayment of estimated taxes - answerNo penalty if owed amount is less
than $1,000
Child and Dependent Care Credit - answer- Nonrefundable
- Child must be under 13
- Expenses are limited to lowest earned income of either spouse
- Depending on AGI you get ~20% of expenses covered
- maximum is 3,000
Retirement Savings Contribution Credit - answer- Nonrefundable
- Covers up to $2,000 for contributions to Traditional or Roth
Excess Social Security Withheld - answerRefundable if withholdings were made by
more than one employer
Safe Harbor for penalty for underpayment of estimated taxes - answerThe lesser of:
90% of the tax on current year's return
OR
110% of the tax on last year's return (if AGI is >150k, otherwise 100%)
Donee's Basis of Property - answerException kicks in when FMV < NBV
Scenario 1 for Donee's Basis - answerSales Price > NBV
use NBV as basis
Scenario 2 for Donee's Basis - answerSales Price < FMV
use FMV as basis
Scenario 3 for Donee's Basis - answerSales Price is in between FMV and NBV
Sales Price is Basis - no G/L
, Basis for Depreciation of Transferred Property - answerLesser of FMV and original
Basis
Tax Basis for G/L for Transferred Property - answerIf there is a Gain: Basis is adjusted
basis at time of sale
If there is a Loss: Take lesser of Basis and FMV at Conversion, then deduct
depreciation
Inherited Property: LT or ST - answerAlways LT. No matter what
Nonresidential Property - answerDepreciated over 39 years, using mid month
depreciation
Residential Property - answerDepreciated over 27.5 Years, using mid month convention
Mid Month Convention MACRS - answerStraight-line, Half the month of sale and
purchase
MACRS 5 year property includes - answerAutomobiles, light trucks, computers, and
copiers
MACRS 7 year property includes - answerFurniture and fixtures, machinery, and
equipment
Midquarter convention is used when - answerMore than 40% of assets are placed into
service in Q4
Intangible assets are amortized over - answer15 years (180 Months)
Bonus Depreciation Limitation - answerAssets converted from personal - business
cannot use bonus depreciation
Assets received as gift are also not eligible
Inherited Property also not eligible
Casualty Loss for C Corps - answerPartially Destroyed: lesser of:
- NBV of property before loss
- Decline in value after loss
Fully Destroyed:
- NBV of property before loss
Deduct Insurance reimbursement for each
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jopewa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now