CPA Reg 2024/2025 Updated Exam with
Complete Solutions | Rated A+
- ✔✔
Refundable Tax Credits - ✔✔Child Tax Credit
Earned Income Credit
Federal Income Tax Withheld
Excess Social Security Withheld
American Opportunity (40% refundable)
Penalty for underpayment of estimated taxes - ✔✔No penalty if owed
amount is less than $1,000
Child and Dependent Care Credit - ✔✔- 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 - ✔✔- Nonrefundable
- Covers up to $2,000 for contributions to Traditional or Roth
,Excess Social Security Withheld - ✔✔Refundable if withholdings were
made by more than one employer
Safe Harbor for penalty for underpayment of estimated taxes - ✔✔The
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 - ✔✔Exception kicks in when FMV < NBV
Scenario 1 for Donee's Basis - ✔✔Sales Price > NBV
use NBV as basis
Scenario 2 for Donee's Basis - ✔✔Sales Price < FMV
use FMV as basis
Scenario 3 for Donee's Basis - ✔✔Sales Price is in between FMV and NBV
Sales Price is Basis - no G/L
Basis for Depreciation of Transferred Property - ✔✔Lesser of FMV and
original Basis
Tax Basis for G/L for Transferred Property - ✔✔If 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 - ✔✔Always LT. No matter what
Nonresidential Property - ✔✔Depreciated over 39 years, using mid month
depreciation
Residential Property - ✔✔Depreciated over 27.5 Years, using mid month
convention
Mid Month Convention MACRS - ✔✔Straight-line, Half the month of sale
and purchase
MACRS 5 year property includes - ✔✔Automobiles, light trucks, computers,
and copiers
MACRS 7 year property includes - ✔✔Furniture and fixtures, machinery,
and equipment
Midquarter convention is used when - ✔✔More than 40% of assets are
placed into service in Q4
Intangible assets are amortized over - ✔✔15 years (180 Months)
Bonus Depreciation Limitation - ✔✔Assets converted from personal -
business cannot use bonus depreciation
Complete Solutions | Rated A+
- ✔✔
Refundable Tax Credits - ✔✔Child Tax Credit
Earned Income Credit
Federal Income Tax Withheld
Excess Social Security Withheld
American Opportunity (40% refundable)
Penalty for underpayment of estimated taxes - ✔✔No penalty if owed
amount is less than $1,000
Child and Dependent Care Credit - ✔✔- 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 - ✔✔- Nonrefundable
- Covers up to $2,000 for contributions to Traditional or Roth
,Excess Social Security Withheld - ✔✔Refundable if withholdings were
made by more than one employer
Safe Harbor for penalty for underpayment of estimated taxes - ✔✔The
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 - ✔✔Exception kicks in when FMV < NBV
Scenario 1 for Donee's Basis - ✔✔Sales Price > NBV
use NBV as basis
Scenario 2 for Donee's Basis - ✔✔Sales Price < FMV
use FMV as basis
Scenario 3 for Donee's Basis - ✔✔Sales Price is in between FMV and NBV
Sales Price is Basis - no G/L
Basis for Depreciation of Transferred Property - ✔✔Lesser of FMV and
original Basis
Tax Basis for G/L for Transferred Property - ✔✔If 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 - ✔✔Always LT. No matter what
Nonresidential Property - ✔✔Depreciated over 39 years, using mid month
depreciation
Residential Property - ✔✔Depreciated over 27.5 Years, using mid month
convention
Mid Month Convention MACRS - ✔✔Straight-line, Half the month of sale
and purchase
MACRS 5 year property includes - ✔✔Automobiles, light trucks, computers,
and copiers
MACRS 7 year property includes - ✔✔Furniture and fixtures, machinery,
and equipment
Midquarter convention is used when - ✔✔More than 40% of assets are
placed into service in Q4
Intangible assets are amortized over - ✔✔15 years (180 Months)
Bonus Depreciation Limitation - ✔✔Assets converted from personal -
business cannot use bonus depreciation
