Professional Documents
Culture Documents
Table of Contents
The N.I.N.J.A. Framework
Taxation
I. Individual Taxation 8
II. Partnership Taxation 27
III. Corporate Taxation 36
IV. Gift & Estate Taxation 51
V. Property Transactions 58
VI. Multi-Jurisdictional Tax Issues 68
Law & Professional Responsibilities
VII. Professional Responsibilities 70
VIII. Federal Securities Acts 74
IX. Business Structures 79
X. Contract Law 94
XI. Sales Law 99
XII. Commercial Paper 102
XIII. Secured Transactions 111
XIV. Bankruptcy & Debt 112
XV. Employment & Environment Law 123
XVI. Property Law 126
XVII. Agency Law 129
XVIII. Dodd-Frank Reform Act 135
XIX. JOBS Act 141
INTENSE NOTES
Repeat after me: PUT THE HIGHLIGHTER DOWN.
Which method do you think will help you learn the material
better painting printed words in a book with pretty
florescent colors or writing them down on a legal pad and
thinking about the information?
NON-STOP MCQS
Now is the time to start working NINJA MCQ and do them
with a focused frenzy. Do so many MCQs that youre
absolutely sick of them. As you encounter little fact nuggets
that you didnt know or are prone to forget, write it down
and add it to your voluminous stack of notes.
JUST RE-WRITE IT
This is where it gets tedious. This is also where the payoff
happens. You may be familiar with the fact that if you had a
choice between $3 Million and 1 doubled daily for 31 days,
the penny doubled for 31 days ends up tripling the $3 Million.
The payoff, however, doesnt happen until the 31st day. The
road is long, but ends up being worth it in the end.
The same goes for re-writing your study notes. The thought
of grabbing that stack of legal pads and going to town rewriting what youve already written may sound like a
ridiculous suggestion at first, but I am a firm believer in its
impact.
Merely writing down your notes and then reviewing them
before your exam doesnt have near the impact as taking
your furious scribbles and converting them into re-packaged,
easily-digestible fact nuggets.
Not only will your notes mean more when youve whittled
away the non-essentials, but you are actually learning the
RE-WRITING
This step is optional, but it won over a lot of skeptics with its
results. This is not mainstream advice. This is the NINJA
way. The mainstream way of studying for the CPA Exam is
old-fashion and outdated.
Forget the old way. You are a NINJA now.
I. Individual Taxation
2014 INDIVIDUAL TAX RATES (Tested until 7/1/15)
! Single Taxpayer
Taxable
Income
Over
$0
$9,075
$36,900
$89,350
$186,350
$405,100
$406,750
Pay
$0
$907.50
$5,081.25
$18,193.75
$45,353.75
$117,541.25
$118,118.75
+
%
Excess
on
10%
15%
25%
28%
33%
35%
39.6%
of
the
amount
over
$0
$9,075
$36,900
$89,350
$186,350
$405,100
$406,750
Pay
$0
$1,815
$10,162.50
$28,925
$50,765
$109,587.50
$127,962.50
+
%
Excess
on
10%
15%
25%
28%
33%
35%
39.6%
of
the
amount
over
$0
$18,150
$73,800
$148,850
$226,850
$405,100
$457,600
10
11
! Capital Loss
o $3,000 Loss and Carry Forward rest Indefinitely
o Loss retains Character (STCL vs LTCL)
" Compare to a Corporation
3 years back /5 years forward
Carry forward as a STCL only
INSTALLMENT SALES
! Gross Profit / Contract Price
o Contract Price = Sales Price (Buyer Liability)
HOME MORTGAGE INTEREST
! Mortgage Interest deductible on loans up to $1M
! Home Equity Interest deductible on loans up to $100K
BUSINESS GIFTS (SCHEDULE C)
! $25 per person is deductible
! Service awards up to $400 are deductible
BUSINESS LOSSES
! Business Losses only offset active Business Income
o W2 wages are considered active Business Income
12
13
14
15
16
17
18
19
20
21
22
23
24
P1: $80,000
P2: $20,000
P3: $0
R2: P2 (P3 + 15k)
R2: $20,000 (0 + 15,000)
R2: $5,000
R1:
R1:
R1:
R1:
R1:
R3: R1 + R2
R3: $57,500 + $5,000
R3: $62,500
Conclusion: In year 3, the husband will include $62,500 in
gross income due to alimony recapture and the wife will
have a deduction of $62,500.
ADOPTIONS
! Adoption Expenses not deductible
o Adoption Credit available
NET OPERATING LOSS (NOL)
! Carryback 2 ... Carryforward 20
IRA CONTRIBUTIONS
! Traditional IRA = Deductible
! Roth IRA = Not Deductible
25
FILING STATUS
! Married Filing Jointly
o Must be married at end of year
o If spouse dies, must be married at end of year
! Head of Household
o Has a dependent child
o Provides more than 50% support
o Lives with them more than 50% of year
! Qualifying Widow(er)
o Has a dependent child
o Gets MFJ status for year of death + 2 tax years
AFFORDABLE CARE ACT (OBAMACARE)
! Annual Penalty for not having 'minimum essential
coverage'
o Greater of:
" $95 per person ($47.50 if under 18)
" 1% of Household Income over threshold
o 3 month grace period for being uninsured
26
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