Ask Joey ™ a Question

What to focus on in final week of REG studying?

If you are aiming to retake this in just one week, my biggest suggestion would be to focus on fine tuning your approach and unless you feel like you are solid on this, my suggestion would be to focus heavily on entity tax as it’s where the bulk of the points can be picked up. 

Entity tax: Instead of studying entity by entity (e.g., C Corp., S Corp., partnerships etc.) try to understand the differences in the big four entity tax topics. Study entity formation for all three entities, then study taxation for all three, and then nonliquidating & liquidating distribution rules for all three:

1) Entity formation rules for all three entities (e.g., basis in shareholder/partnership interest upon initial contributions)

2) Entity taxation rules for all three entities (no big differences here except a few little things like dividends received deductions for C corps, accumulated earnings tax, PHC tax, separately state & nonseparately stated rules for passthrough entities) 

3) Nonliquidating distributions rules for all three entities (C corps – current E&P, accumulated E&P, nontaxable return of capital, cap gain. S corps – AAA account, any existing C corp. accumulated E&P, nontaxable return of capital, cap gains. Partnership – cash, property) 

4) Liquidating distribution rules for all three entities. 

I would say another good use of time is hammering home the misc. business law topics. I know there is a large volume of content for bizz law for how small it is weighted to your total score, but the devil is in the details (similar to gvt. accounting for FAR) and hammering home gross topics like secured transactions and suretyship can definitely pick up points. 


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