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: • How to distinguish between tax-free qualified education expenses like tuition and fees, and taxable non-qualified expenses like room and board. • That funds requiring a student to teach or perform research are considered fully taxable compensation for services, not a tax-free scholarship. • The application of the annual exclusion limit of $5,250 for educational assistance benefit...

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: • Understand the crucial difference between non-deductible commuting from home to work and deductible business transportation between job sites. • The standard mileage rate is a simplified calculation, but items like business-related parking fees and tolls can be deducted separately on top of it. • Your first-year choice matters immensely: using the standard mileage rate preserv...

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 base, standard catch-up, and special age 60-63 catch-up limits for 401(k) plans. • The 2025 contribution and catch-up limits for Traditional and Roth IRAs. • How to differentiate and apply the unique contribution rules for SIMPLE IRAs, including their two catch-up tiers. • The calculation method and overall limit for SEP IRA contributions for self-employed individua...

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 reporting transactions directly on Schedule D versus detailing them on Form 8949. • How to use Form 1099-B information, specifically whether basis is reported to the IRS, to determine the correct reporting method. • The precise steps for reporting a wash sale on Form 8949, including the use of code 'W' and the bas...

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 primary sources of earned income are wages, salaries, tips, and net earnings from self-employment. • To distinguish earned income from unearned income like interest, dividends, pensions, and unemployment benefits. • That only the net profit from self-employment, not gross receipts, counts as earned income. • The specific rule for disability benefits: they are earned income on...

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 taking a foreign tax credit is almost always more beneficial than taking an itemized deduction for foreign income taxes paid. • How to identify a creditable foreign tax, focusing on income taxes versus non-creditable taxes like VAT or property taxes, a common exam trap. • The foreign tax credit limitation, which restricts the credit...

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: • That backup withholding is a flat 24% rate applied to specific payments like interest, dividends, and nonemployee compensation. • How a missing or incorrect Taxpayer Identification Number (TIN) on Form W-9 is the most common trigger for backup withholding. • The process initiated by an IRS "B-Notice" when a payee's name and TIN on a Form 10...

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 general three-year statute of limitations for the IRS to assess additional tax and how filing dates affect it. • The six-year assessment statute for substantial understatements of gross income, including how to calculate the 25% threshold. • Situations where no statute of limitations applies, such as failure to file or filing a fraudulent return. • The disti...

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: • Distinguish the three grounds for an OIC: Doubt as to Collectibility, Doubt as to Liability, and Effective Tax Administration (ETA). • Understand that Reasonable Collection Potential (RCP) is the key metric for Doubt as to Collectibility offers. • Recognize that Doubt as to Liability focuses on the legitimacy of the tax debt, not the taxpaye...

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: • Taxpayers must be age 70½ or older to make a Qualified Charitable Distribution (QCD). • A QCD allows a direct, tax-free transfer of up to $105,000 (indexed annually) from an IRA to an eligible charity. • The amount of the QCD can satisfy all or part of a taxpayer's Required Minimum Distribution (RMD) for the year. • A key exam...

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: • Qualified HSA distributions for medical expenses are always tax-free and penalty-free. • Non-qualified distributions are subject to ordinary income tax plus a steep 20% penalty. • The 20% penalty is waived if the account holder is over age 65, disabled, or deceased, though the distribution is still taxable income. • All distributions are reported on Form 8889, where the taxpayer...

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 identify a statutory employee on Form W-2 by looking for a check in Box 13. • The four specific categories of statutory employees, easily remembered with the "DISH" mnemonic. • Why statutory employees report their W-2 income on Schedule C, not as regular wages. • The unique tax withholding rule: FICA taxes are withheld, but feder...

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 if an S corporation distribution is a tax-free return of capital or a taxable capital gain. • The critical difference between stock basis and debt basis, and why only stock basis absorbs distributions tax-free. • The specific year-end basis ordering rule: Income first, then Distributions, then Losses. • How to apply the four-tier...

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 gain on a partnership interest sale is split between ordinary income and capital gain. • A partner's basis, crucial for the gain calculation, must be adjusted for all K-1 items like income, losses, and distributions. • Section 751 "hot assets," which are unrealized receivables and inventory, are what trigger ordinary income treatment. • Any gain remaining...

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 the excess business loss using the 2025 thresholds of $305,000 for single and $610,000 for joint filers. • That any disallowed excess business loss is treated as a Net Operating Loss (NOL) carryforward to subsequent tax years. • The critical order of loss limitations: basis, at-risk, and passive activity rules must be applied before the exc...

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 80% taxable income limitation to Net Operating Loss deductions. • The modern rule for NOLs is indefinite carryforward with no carryback, except for specific farming losses. • Why nonbusiness deductions like the standard deduction cannot create or increase an NOL. • Common exam traps, such as confusing current NOL rules with outdated pre-TCJA...

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 post-TCJA rule: hobby income is fully taxable, while hobby expenses are entirely non-deductible. • How to apply the three-out-of-five-year presumption of profit, including the special two-out-of-seven-year rule for horses. • The purpose of the IRS's nine-factor test in determining if an activity is a business or a hobby. • A common exam trap of confusing...

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: • Loss deductions must sequentially clear three hurdles: Basis, At-Risk, and Passive (B-A-P). • S corp shareholders do not receive basis for entity-level debt, unlike partners in a partnership. • At-risk amounts generally include cash invested plus recourse debt, but exclude nonrecourse financing. • Form 6198 is used to calculate and apply the at-risk limitations to losses. • A key exam...

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: • Suspended passive losses are not permanently lost; they are carried forward indefinitely to future tax years. • Carryover losses are first used to offset passive income from any source before being applied to nonpassive income. • A complete, taxable disposition of a passive activity unlocks all suspended losses associated with that specific activity. • Upon death, su...

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 AOTC is a per-student credit with a 40% refundable portion, while the LLC is a per-return credit and is entirely non-refundable. • Qualified education expenses must be reduced by tax-free assistance like scholarships and grants before any credit is calculated. • A student who can be claimed as a dependent cannot claim an education credit...

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 reconcile Advance Premium Tax Credits (APTC) with the final allowable Premium Tax Credit (PTC) on Form 8962. • The role of Modified AGI, the Federal Poverty Line (FPL), and the applicable figure in calculating a taxpayer’s required contribution. • Why the second-lowest-cost silver plan, or benchmark plan, is critical for determining the final PTC...

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 $2,700 annual FICA threshold and the $1,000 quarterly FUTA threshold for household employees. • That all household employment taxes (FICA and FUTA) are reported on Schedule H, which is filed with the employer's Form 1040. • Why a household employee must receive a Form W-2 and never a Form 1099-NEC, a common point o...

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: • That cancelled debt is generally taxable income reported on Form 1099-C, but exam questions focus on the exceptions. • The insolvency exclusion is strictly limited to the amount by which total liabilities exceed the FMV of total assets immediately before the debt cancellation. • Debt discharged in a Title 11 bankruptcy case is always fully exclude...

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 Section 1031 tax deferral now applies exclusively to real property and not personal property. • How to navigate the strict 45-day identification and 180-day receipt timelines, including a common exam trap involving tax return due dates. • The rule for recognizing gain when "boot," such as cash or debt relief, is received in an exchang...

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 the gross profit percentage to determine the taxable gain recognized from each payment. • Why depreciation recapture under Sections 1245 and 1250 must be recognized in the year of sale. • The rule prohibiting dealers from using the installment method for sales of their inventory. • Key restrictions for installment sales of depreciable property between r...

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: • Inherited property’s basis is generally its Fair Market Value (FMV) on the decedent's date of death, and the holding period is always considered long-term. • The alternate valuation date (six months after death) can only be elected if it reduces both the gross estate value and the estate tax liability. • If an asset is...

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: • Learn when Form 709 is required for gifts exceeding the $19,000 annual exclusion (2025). • Understand how taxable gifts reduce the lifetime estate and gift tax exemption, even if no tax is paid immediately. • Distinguish between a "present interest" gift, which qualifies for the exclusion, and a "future interest" gift, which does not. • Identify the rules for gift...

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 if a Form 706 is required based on the gross estate and basic exclusion amount. • Why life insurance proceeds are a common exam trap for inclusion in the gross estate. • The critical role of the unlimited marital deduction and its U.S. citizen spouse requirement. • When and why the portability election...

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 an Injured Spouse claim (Form 8379) for refund offsets and an Innocent Spouse claim (Form 8857) for tax liability relief. • How to identify the specific past-due obligations, like child support or student loans, that trigger the need for an injured spouse claim. • The two correct methods for filing Form 8379, either with th...

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 distinct qualifications for Innocent Spouse Relief, Separation of Liability, and Equitable Relief under IRC Section 6015. • How the "reason to know" standard is a critical factor for the IRS to deny Innocent Spouse Relief. • The strict two-year deadline for filing Form 8857, which begins from the first IRS collection activity. • Why Separation of Liability...

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 Kiddie Tax applies to unearned income for children under 19, or under 24 if a full-time student. • For 2025, the first $1,300 of unearned income is offset by the child's standard deduction and is tax-free. • The next $1,300 of unearned income is taxed at the child's own marginal tax rate. • Unearned income exceeding the $2,600 threshold is taxed at...

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 federal tax treatment of 529 plan contributions, growth, and qualified distributions. • How to calculate the taxable portion and penalty on a non-qualified 529 distribution. • Key limitations for the provision allowing rollovers from a 529 plan to a Roth IRA. • The primary differences between 529 plans and Coverdell ESAs for exam purposes. • Common exam traps regarding income limi...

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 the combat zone pay exclusion differs for enlisted members versus commissioned officers. • The scope of the automatic extension of deadlines for filing, paying, and other tax acts. • How the Military Spouses Residency Relief Act (MSRRA) impacts a spouse's state income tax liability. • Why active-duty military members are a key exception to the suspe...

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 IP PIN is a mandatory six-digit number for taxpayers whom the IRS has issued one, used to validate identity when filing a tax return. • E-filed returns submitted without a required IP PIN are automatically rejected, while paper-filed returns without the PIN face significant processing delays. • Taxpayers can voluntarily obtain an IP PIN thr...

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 three-year lookback period for refunds runs from the original due date, not an extended filing date. • The statute of limitations for claiming refunds on bad debts and worthless securities is a special seven-year period. • A protective claim formally preserves a taxpayer's right to a refund that depends on a future event. • How an in...

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 general rule for the statute of limitations for a refund is the later of 3 years from filing or 2 years from payment. • How to identify a common exam trap where an early-filed return is treated as filed on the due date for the 3-year rule. • How the 2-year rule from the date of tax...

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 underpayment penalty applies if a taxpayer pays less than the safe harbor amount, which is generally 90% of the current year's tax or 100% of the prior year's tax (110% for high-income taxpayers). • The annualized income installment method is crucial for taxpayers with uneven income streams, as it calculates required payments based on when incom...

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 $1,000 threshold that triggers the requirement to pay estimated taxes. • The two primary safe harbor rules to avoid underpayment penalties: 90% of the current year's tax or 100% of the prior year's tax. • The critical high-income exception, which increases the prior-year safe harbor to 110% if AGI exceeds $150,000. • How to use the annualized income method via Form...

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 redesigned Form W-4 uses direct dollar adjustments for withholding, not allowances. • For households with multiple jobs, checking the box in Step 2(c) on both W-4s is the simplest way to ensure accurate withholding. • Only the W-4 for the highest-paying job should include adjustments for dependents (Step 3) and other income/deductions (Step 4...

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 0.9% Additional Medicare Tax applies to earned income over $200,000 for single filers and $250,000 for joint filers. • Employers use a universal $200,000 wage threshold to begin withholding, regardless of the employee's actual filing status or total income. • A tax liability can exist without any employer withholding, especially for married couples where each spouse earns under $...