ENROLLED AGENT 2026 EXAMINATION SET QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔T/F: you can deduct up to $5,000 immediately for fees paid to consultants, lawyers,
and accountants as long as you being operations before the end of the same year.
Anything over $5K must be amortized over future years in equal amounts over the next
180 months - ✔✔true
✔✔If your tax pro who handles your business's tax also handles your personal taxes,
you should ask them to split their bills between personal and business because of this
legislation under TCJA. - ✔✔Only business related tax work fees are deductible
✔✔True or false: If someone backs out of going in to business, costs aren't deductible
as business expenses. - ✔✔true
✔✔True or false: The costs of a general search for a business to buy or of investigating
whether to start a business are not deductible as business expenses but as investment
expenses - ✔✔false; neither business expense or investment expense
✔✔True or false: The costs of attempting to buy or start a specific business are
deductible as investment expenses - ✔✔True
✔✔For office supplies to be immediately deductible,____________________________
. However, the IRS knows that it's impractical to use all of your office supplies by year
end - ✔✔they should be used up in the year they are purchased
✔✔This legislation significantly changed the deduction rules for business entertainment
deductions - ✔✔TCJA
✔✔True or false: prior to TCJA, there was no limit on what was deductible for meals
and entertainment (fancy entertainment venues, going out to nightclubs, attending
sporting events, etc). - ✔✔true
✔✔TCJA has reduced the amount that's deductible for meals with clients from 100%
deductible to ____% - ✔✔50
✔✔Guidelines for 50% meal deductions - ✔✔ordinary and necessary, meal between an
owner or employee and a prospective client, customer, or similar business client, not
extravagant or lavish. Meals provided by at entertainment venues are paid separately
(only meal part is deductible).
, ✔✔True or false: company parties and outings for your employees and their families are
100% deductible. No business need be discussed, but everyone must be invited. -
✔✔true
✔✔T/F Public events: meals for the general public are fully deductible as a form of
advertising. - ✔✔true
✔✔Travel expenses are deductible as long as: - ✔✔travel is ordinary and necessary
✔✔Which travel costs are 100% deductible? - ✔✔transportation, baggage and shipping,
lodging, incidentals, and laundry
✔✔What is the only travel cost that's not 100% deductible? - ✔✔meals; tips on meals
are also subject to 50% deductible
✔✔What are the two methods for deducting lodging, meals, and incidentals - ✔✔actual
cost and per diem
✔✔This method of deducting lodging, meals, and incidentals involves keeping track of
every purchase made including food and lodging on the road. - ✔✔actual
✔✔This method of deducting lodging, meals, and incidentals involves taking the IRS
approved dollar amounts each day you're on the road. How much you can deduct
depends on where you're traveling. - ✔✔Per Diem
✔✔True or false; anyone can use lodging deductions when deducting travel expenses,
including owners. - ✔✔False; owners cannot deduct lodging expenses.
✔✔What are the rules for being able to deduct moving expenses? - ✔✔if you moved
your residence because of a change in business location (business site > 50 miles
farther from your home than your old business site was) or if you're starting up a new
business and it's also > 50 miles away from home.
✔✔True or false: TCJA still allows you deduct personal moving expenses - ✔✔false; it
does not
✔✔True or false: cost of moving expenses of business equipment and goods is
deductible. - ✔✔true
✔✔T/F The TCJA allows employers who offer paid family medical leave as defined by
the family and medical leave act a tax credit. - ✔✔true
AND ANSWERS GUARANTEE A+
✔✔T/F: you can deduct up to $5,000 immediately for fees paid to consultants, lawyers,
and accountants as long as you being operations before the end of the same year.
Anything over $5K must be amortized over future years in equal amounts over the next
180 months - ✔✔true
✔✔If your tax pro who handles your business's tax also handles your personal taxes,
you should ask them to split their bills between personal and business because of this
legislation under TCJA. - ✔✔Only business related tax work fees are deductible
✔✔True or false: If someone backs out of going in to business, costs aren't deductible
as business expenses. - ✔✔true
✔✔True or false: The costs of a general search for a business to buy or of investigating
whether to start a business are not deductible as business expenses but as investment
expenses - ✔✔false; neither business expense or investment expense
✔✔True or false: The costs of attempting to buy or start a specific business are
deductible as investment expenses - ✔✔True
✔✔For office supplies to be immediately deductible,____________________________
. However, the IRS knows that it's impractical to use all of your office supplies by year
end - ✔✔they should be used up in the year they are purchased
✔✔This legislation significantly changed the deduction rules for business entertainment
deductions - ✔✔TCJA
✔✔True or false: prior to TCJA, there was no limit on what was deductible for meals
and entertainment (fancy entertainment venues, going out to nightclubs, attending
sporting events, etc). - ✔✔true
✔✔TCJA has reduced the amount that's deductible for meals with clients from 100%
deductible to ____% - ✔✔50
✔✔Guidelines for 50% meal deductions - ✔✔ordinary and necessary, meal between an
owner or employee and a prospective client, customer, or similar business client, not
extravagant or lavish. Meals provided by at entertainment venues are paid separately
(only meal part is deductible).
, ✔✔True or false: company parties and outings for your employees and their families are
100% deductible. No business need be discussed, but everyone must be invited. -
✔✔true
✔✔T/F Public events: meals for the general public are fully deductible as a form of
advertising. - ✔✔true
✔✔Travel expenses are deductible as long as: - ✔✔travel is ordinary and necessary
✔✔Which travel costs are 100% deductible? - ✔✔transportation, baggage and shipping,
lodging, incidentals, and laundry
✔✔What is the only travel cost that's not 100% deductible? - ✔✔meals; tips on meals
are also subject to 50% deductible
✔✔What are the two methods for deducting lodging, meals, and incidentals - ✔✔actual
cost and per diem
✔✔This method of deducting lodging, meals, and incidentals involves keeping track of
every purchase made including food and lodging on the road. - ✔✔actual
✔✔This method of deducting lodging, meals, and incidentals involves taking the IRS
approved dollar amounts each day you're on the road. How much you can deduct
depends on where you're traveling. - ✔✔Per Diem
✔✔True or false; anyone can use lodging deductions when deducting travel expenses,
including owners. - ✔✔False; owners cannot deduct lodging expenses.
✔✔What are the rules for being able to deduct moving expenses? - ✔✔if you moved
your residence because of a change in business location (business site > 50 miles
farther from your home than your old business site was) or if you're starting up a new
business and it's also > 50 miles away from home.
✔✔True or false: TCJA still allows you deduct personal moving expenses - ✔✔false; it
does not
✔✔True or false: cost of moving expenses of business equipment and goods is
deductible. - ✔✔true
✔✔T/F The TCJA allows employers who offer paid family medical leave as defined by
the family and medical leave act a tax credit. - ✔✔true
