EA EXAM PART 1 2025 UPDATED QUESTIONS AND VERIFIED
ANSWERS
C Corp return due date - CORRECT ANSWER✅✅✅April 15 unless fiscal then march 15
990 return due date - CORRECT ANSWER✅✅✅May 15
Return(s) due on March 15 - CORRECT ANSWER✅✅✅1065 and 1120s
April 15th deadline - CORRECT ANSWER✅✅✅1040, 1041, 709, 114/FBAR 1120
Rental loss AGI limit - CORRECT ANSWER✅✅✅100k
MFJ base amount rental loss - CORRECT ANSWER✅✅✅25k
Formula for excess AGI for rental loss - CORRECT ANSWER✅✅✅AGI-$100k, divide result in half and
subtract from base amount (25k). Example: AGI $150k - $100k = $50k, 50k/2= 25k, $25k minus base
amount $25k= no allowable deduction
Foreign Tax Credit Formula - CORRECT ANSWER✅✅✅)Foreign income/world wide income) x US tax,
this is the amount of credit allowed,
Foreign tax credit max - CORRECT ANSWER✅✅✅$28,800
Credit for foreign tax paid on foreign INTEREST income is limited to... - CORRECT
ANSWER✅✅✅$6000
Applicable gift tax to include in basis of gift - CORRECT ANSWER✅✅✅(FMV - donor basis/FMV-gift
exclusion) x gift tax paid
, 1031 exchange basis in new property - CORRECT ANSWER✅✅✅FMV of property
1231 exchange basis of acquired property - CORRECT ANSWER✅✅✅Amount realized
- Adjusted basis. = realized gain
FMV of property received
+ boot. = amount realized
Capital gains and losses are reported on... - CORRECT ANSWER✅✅✅Schedule D
Recognized gain per Sec. 1232 is called... - CORRECT ANSWER✅✅✅Boot received in exchange
Boot - CORRECT ANSWER✅✅✅Liability relief, cash, other property acquired in transaction
Estate return (706) must be filed if gross estate exceeds... - CORRECT ANSWER✅✅✅$11.4 million
Form 8379 - CORRECT ANSWER✅✅✅Injured spouse form - 2 years to request relief
Claiming HOH means you do what? - CORRECT ANSWER✅✅✅"Maintaining the home" - tent,
mortgage, grocery, utilities, insurance, property tax,
Types of NII income - CORRECT ANSWER✅✅✅Rents, royalties, interest, dividends, capital gains,
passive activity income, non qualified annuities
7.5% AGI floor - CORRECT ANSWER✅✅✅First 7.5% AGI nondeductible portion of medical expenses
Federal disaster reporting on form... - CORRECT ANSWER✅✅✅Form 4684 and schedule A
ANSWERS
C Corp return due date - CORRECT ANSWER✅✅✅April 15 unless fiscal then march 15
990 return due date - CORRECT ANSWER✅✅✅May 15
Return(s) due on March 15 - CORRECT ANSWER✅✅✅1065 and 1120s
April 15th deadline - CORRECT ANSWER✅✅✅1040, 1041, 709, 114/FBAR 1120
Rental loss AGI limit - CORRECT ANSWER✅✅✅100k
MFJ base amount rental loss - CORRECT ANSWER✅✅✅25k
Formula for excess AGI for rental loss - CORRECT ANSWER✅✅✅AGI-$100k, divide result in half and
subtract from base amount (25k). Example: AGI $150k - $100k = $50k, 50k/2= 25k, $25k minus base
amount $25k= no allowable deduction
Foreign Tax Credit Formula - CORRECT ANSWER✅✅✅)Foreign income/world wide income) x US tax,
this is the amount of credit allowed,
Foreign tax credit max - CORRECT ANSWER✅✅✅$28,800
Credit for foreign tax paid on foreign INTEREST income is limited to... - CORRECT
ANSWER✅✅✅$6000
Applicable gift tax to include in basis of gift - CORRECT ANSWER✅✅✅(FMV - donor basis/FMV-gift
exclusion) x gift tax paid
, 1031 exchange basis in new property - CORRECT ANSWER✅✅✅FMV of property
1231 exchange basis of acquired property - CORRECT ANSWER✅✅✅Amount realized
- Adjusted basis. = realized gain
FMV of property received
+ boot. = amount realized
Capital gains and losses are reported on... - CORRECT ANSWER✅✅✅Schedule D
Recognized gain per Sec. 1232 is called... - CORRECT ANSWER✅✅✅Boot received in exchange
Boot - CORRECT ANSWER✅✅✅Liability relief, cash, other property acquired in transaction
Estate return (706) must be filed if gross estate exceeds... - CORRECT ANSWER✅✅✅$11.4 million
Form 8379 - CORRECT ANSWER✅✅✅Injured spouse form - 2 years to request relief
Claiming HOH means you do what? - CORRECT ANSWER✅✅✅"Maintaining the home" - tent,
mortgage, grocery, utilities, insurance, property tax,
Types of NII income - CORRECT ANSWER✅✅✅Rents, royalties, interest, dividends, capital gains,
passive activity income, non qualified annuities
7.5% AGI floor - CORRECT ANSWER✅✅✅First 7.5% AGI nondeductible portion of medical expenses
Federal disaster reporting on form... - CORRECT ANSWER✅✅✅Form 4684 and schedule A
