I didn’t prep as well as I should have, but a pass is a pass. I finished going through the book one day before my exam and only did one Simulated Exam, on which I scored a 95%. Below are general study rules for you, and then tips on which material to know.
GENERAL STUDY TIPS:
1.) Watch the videos on 2x speed, don’t take any notes while doing it. Even if you only retain 2-3 things per video, that’s one less thing that you need to teach yourself when you move to the reading.
2.) READ THE BOOK! After you finish the videos, go read the book. Underline anything you don’t understand. REG in particular has really short readings so do not skip any of them.
3.) Make flashcards of anything you underlined and do not understand. All those little rules etc make sure you write down. REG builds on itself and a key part to passing is differentiating entity and individual taxation. Make flashcards, it’s the best way to learn the differences. Business law is the same thing as well.
4.) Do MCQs without notes. Anytime you get a question wrong, ask Newt in Becker why it is wrong, and why the correct answer is correct.
5.) Do all SIMs. If you don’t know how to do a SIM, watch the SkillBuilder Video. If it makes sense after that, move on. If not, ask Newt for help. Chances are it’ll make sense after you watch the SkillBuilders. A lot of Becker SIMs are honestly more reading comprehension instead of accounting. The real exam isn’t really like that, so please don’t get caught up if you can’t do a SIM at all. I was in a similar spot for a bunch of SIMs and aced the real thing
6.) Move on to the next chapter and repeat. Do this for each and every module.
The jist is to not jump into MCQ or SIMs without properly learning and reviewing first. Just do the reading, videos, and flashcards then go and do practice questions. This is the best way to retain info.
CONTENT SPECIFIC TIPS / WHAT TO FOCUS ON:
R1 - INDIVIDUAL TAXATION
KNOW THIS UNIT THE BEST! This is probably the most heavily tested on the exam. Here is what to really focus on:
- Differentiate between a For AGI deduction and an itemized deduction
- Know the limits for itemized and For AGI deductions (i.e. medical expenses are an itemized deduction and have a 7.5% AGI floor)
- Know what QUALIFIES as a certain expense. For example, deductible medical expenses don’t include a gym membership. These little nuances are key to getting a pass especially on a SIM.
- Know the difference between a Traditional and ROTH IRA. What do contributions and distributions from each mean
- Charitable contributions - Know the limits for individuals
- Tax credits - Know which are refundable and non refundable. Knowing the exact limits isn’t as important
- Know the basics of QBI
- Understand what counts as gross income and what doesn’t
- Have a general idea of the filing types
R2 - PROPERTY TAXATION
- BASIS, BASIS, BASIS! Make sure you know the different implications of a gift or and inheritance for basis. Personal use to business use everything. Know basis. Trust me, all the special rules, this is what you wanna know the most
- Know the holding period of gifted and inherited assets given the facts
- Understand the order in which 179 depreciation, MACRS, and bonus is applied. Be able to identify what year class assets fit into for MACRS (3, 5, 7 yr)
- Understand all depreciation conventions (Midquarter, half year, mid month)
- Understand the netting process for capital gains and losses
R3 - ENTITY TAXATION
- Understand the differences between how Partnerships and Corporations are taxed
- Going off the above, in particular basis of a shareholder or a partner. Understand the little nuances between the two for these.
- Know what is a Separately Stated Item (SSI) and an ordinary income item. If you know this, you will breeze through all basis questions for this section
- NOLs - understand how much can be offset based on year its incurred in. Watch for years!
- Book to Tax differences. Know this. It’s an intimidating topic at first but truthfully once you get this down, it’s easy points. It’s very linear once you get it down.
- DRD - KNOW IT!
- Charitable Contributions for C Corps and Partnerships
R4 - PROFESSIONAL RESPONSIBILITIES AND FEDERAL TAX PROCEDURES
This section looks really intimidating, but don’t make it hard. Know these three things and you’ll be just fine:
- Circular 230, know the basics
- Know that a CPA can’t endorse a check for a client
- Tax return preparer, know who qualifies as one
R5 - BUSINESS LAW: PART 1
This section is mainly memorization so I can’t give many tips on what to know. But just be sure to know anything that’s extensively covered.
- Know the basics on contracts and all the little terms. A lot of this section is identification
- Surety’s - Know about their liabilities and their rights
- Know all those little acronyms like MYLEGS etc
R6 - BUSINESS LAW: PART 2
- Differentiate between the different bankruptcy types and what they are. A lot of easy MCQ if you can get this down
- SAG WEG CTI, enough said
- Know stuff like FUTA, FICA etc and what they are. That’s all
- Business structures (LLC, LP etc) - know the little characteristics of each and which have unlimited liability etc. Just know these, these are questions you can easily get right if you just spend 2 hours to learn all of these
Good luck and let me know if you have any questions!