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