Finance Exam Prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The provisional income formula is Modified AGI plus one-half of Social Security benefits. • The first-tier base amounts you must memorize are $25,000 for single filers and $32,000 for joint filers. • A zero-dollar base amount applies to Married Filing Separately taxpayers who lived together, a common exam trap. • Taxability is determined by a two-tier system, making 0%, up to 50%, or up to 85% of benefits taxable. • The taxable amount is always the result of a "lesser of" comparison, a crucial step in the calculation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The 2025 Roth IRA contribution limits and the critical Modified Adjusted Gross Income (MAGI) phase-out ranges that determine eligibility. • The two-part test for a qualified distribution, combining a qualifying event (like age 59½) with the five-year holding period. • How the five-year holding period clock for initial contributions starts on January 1st of the first contribution's tax year. • The ordering rules for non-qualified distributions, remembered by the phrase "Can Everyone Get Paid?" which stands for Contributions, Conversions, and Earnings. • The distinction between the five-year clock for contributions and the separate five-year clock for each conversion, a common exam trap. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The baseline age 59½ rule for penalty-free traditional IRA distributions and the standard 10% early withdrawal penalty. • Key penalty exceptions, including the $10,000 lifetime limit for first-time homebuyers and unlimited withdrawals for qualified education expenses. • The timing rules for Required Minimum Distributions (RMDs), which must begin by April 1st of the year after the taxpayer turns 73. • How a Qualified Charitable Distribution (QCD) allows taxpayers over age 70½ to make tax-free donations that also satisfy their RMD. • The function of Substantially Equal Periodic Payments (SEPPs) as a method to receive penalty-free income before age 59½. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to differentiate between fully and partially taxable pension distributions based on contributions. • The step-by-step calculation for the taxable portion of an annuity using the Simplified Method. • How to interpret key distribution codes on Form 1099-R, such as Code 1 for early distributions. • The most common, testable exceptions to the 10% early withdrawal penalty, including disability and medical expenses. • Why a checked Box 2b on Form 1099-R is a critical signal that you must calculate the taxable amount. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How passive activity losses (PALs) are generally only deductible against passive income, not active or portfolio income. • The mechanics of the special $25,000 loss allowance for individuals who actively participate in rental real estate. • The critical Modified Adjusted Gross Income (MAGI) phase-out range of $100,000 to $150,000 for the rental loss allowance. • The rules for carrying forward suspended passive losses and how they are fully released upon a taxable disposition of the activity. • How to meet the material participation standard, focusing on the 500-hour test, to reclassify an activity as non-passive. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to distinguish between the 27.5-year residential and 39-year commercial depreciation periods. • Why you must always exclude the value of land from the depreciable basis of a property. • The correct way to calculate first-year depreciation using the mandatory mid-month convention. • How to identify the correct "placed-in-service" date, a common exam distraction. • The strict limitation preventing the use of Section 179 expensing on rental buildings. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to correctly identify rental income, especially tricky items like security deposits and advance rent. • The default classification of all rental activities as passive, regardless of participation. • The specific requirements to qualify for the active participation exception. • How to apply the $25,000 maximum loss allowance against non-passive income. • The critical Modified AGI phase-out rule that reduces the $25,000 allowance for higher-income taxpayers. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to apply the '2-out-of-5-year' ownership and use tests to various exam scenarios. • The specific requirements married couples must meet to claim the full $500,000 exclusion. • The '2-2-1 for 500k' mnemonic to remember the key rules for joint filers. • How to calculate a partial exclusion when a taxpayer sells their home for unforeseen circumstances. • How periods of non-qualified use, such as renting out the home, can reduce the excludable gain. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to determine cost basis for securities using the default FIFO method versus specific identification. • The correct way to adjust a stock's per-share basis after a stock split or from reinvested dividends. • How the wash sale rule disallows a loss and requires an upward adjustment to the basis of the new shares. • The application of the $3,000 maximum annual capital loss deduction against ordinary income. • How to calculate the amount and determine the character of a capital loss carryover to future tax years. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical distinction between a capital asset (like a stock) and a non-capital asset (like a business delivery van). • How to master the holding period rule: a sale must occur *more than one year* after purchase to be long-term. • The proper reporting flow from the detailed transaction list on Form 8949 to the summary on Schedule D. • Why long-term gains on collectibles are taxed at a special 28% maximum rate, not the standard 0/15/20% rates. • How unrecaptured Section 1250 gain from depreciable real property is subject to a 25% maximum tax rate. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Report all interest on Schedule B if it exceeds $1,500, but only include taxable interest in your gross income calculation. • Tax-exempt interest is shown on Schedule B for informational purposes but is not added to your taxable income on Form 1040. • Penalties for early withdrawal of savings are an above-the-line deduction on Schedule 1, not a direct reduction of interest income on Schedule B. • A dividend's "qualified" status, which grants a lower tax rate, depends on a specific holding period of more than 60 days. • Exceeding the investment income limit, such as the $11,950 threshold for tax year 2025, can disqualify a taxpayer from receiving credits like the Earned Income Tax Credit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to calculate net profit on Schedule C by subtracting ordinary and necessary expenses from gross receipts. • The critical factors the IRS uses to differentiate an employee from an independent contractor, focusing on the right to control. • Why bartered services must be included in gross receipts at their fair market value. • The common exam trap of distinguishing between currently deductible expenses and capital expenditures. • How net self-employment earnings are subject to SE tax and the proper placement of the one-half SE tax deduction. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Why Box 1 (Wages) and Box 5 (Medicare Wages) on Form W-2 can be different. • The exact $20 monthly threshold that triggers the requirement for employees to report tips. • How to correctly report allocated tips from Box 8 of the W-2 using Form 4137. • A simple rule to distinguish taxable cash-equivalent fringe benefits from non-taxable ones. • Key 2025 dollar limits for non-taxable benefits like education, adoption, and transportation assistance. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Gross income under IRC Section 61 includes all income from any source unless specifically excluded. • Income is taxable regardless of its form; bartered services and property are taxed at their fair market value. • Prizes, awards, and bonuses are fully includible in gross income, even if they are not received in cash. • Items labeled as "gifts" from an employer are almost always considered taxable compensation on the exam. • Your default exam assumption should be that any item of value received is taxable income. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical difference between the support tests for a qualifying child versus a qualifying relative. • Key age test requirements for a qualifying child, including the under 19, under 24 for students, and disability exceptions. • The strict gross income limit that a qualifying relative must meet to be claimed as a dependent. • How to apply the tie-breaker rules when a child is a qualifying child for multiple taxpayers. • The distinction between relatives who must live with you all year and those who do not. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The specific 2025 standard deduction amounts for Single, MFJ, and Head of Household. • How to determine whether a taxpayer should take the standard deduction or itemize their deductions. • How the standard deduction is increased for taxpayers who are age 65 or older, or are blind. • How the new "One Big Beautiful Bill" creates a significant senior deduction that replaces the prior age-based add-on. • How to calculate a taxpayer's full standard deduction in a complex exam scenario involving multiple additional amounts. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Marital status for tax filing is determined on the last day of the year, December 31st. • The Head of Household status requires being unmarried, paying for more than half the cost of a home, and having a qualifying person reside there for more than half the year. • A taxpayer can claim Head of Household based on a dependent parent even if the parent does not live with them. • Qualifying Surviving Spouse status extends joint filing benefits for two years after a spouse's death if the survivor has a dependent child and remains unmarried. • The 'considered unmarried' rule allows a married individual to file as Head of Household if their spouse has not lived with them for the last six months of the year. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The crucial calculation for Adjusted Gross Income (AGI) and its role on the exam. • How to identify "above-the-line" adjustments versus "below-the-line" itemized deductions. • The three-part test for Head of Household status, especially in post-divorce scenarios. • The two-year rule and remarriage restriction for Qualifying Widow(er) status. • A simple mnemonic to remember the time limit and rules for Qualifying Widow(er) status. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep