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