EA Enrolled Agent - Study guides, Class notes & Summaries

1. Which of the following is considered taxable income? A. Child support payments B. Life insurance proceeds received due to the death of a relative C. Alimony received under a divorce agreement executed before 2019 D. Welfare benefits Rationale: Alimony received under pre-2019 agreements is taxable to the recipient; post-2018 agreements are not. 2. A taxpayer files jointly with their spouse. The standard deduction for 2025 is: A. $12,950 B. $18,350 C. $27,700 D. $25,900 ...

EXAM PREP PART 2: ENROLLED AGENT, 2025/2026 WITH CORRECT/ACCURATE ANSWERS

Enrolled Agent Exam Prep - Part 2 Questions with correct Answers (A+ GRADED 100% VERIFIED) 2025/2026

Sole Proprietor correct answers An unincorporated business that is owned by one individual. -The owner of the business accepts all risks and includes business income/expenses on his personal tax return (Schedule C) Partnership correct answers A relationship between 2+ people who carry on a business -Partners must file an annual information return to report operational income/deductions/gains/losses but do not pay income tax. Instead, any profits or losses "pass through" to its pa...

SEE Enrolled Agent Exam Part 2 Lambers Adaptive Drill Exam Questions with 100% Correct Answers How do partners in a partnership report their income? - Partners income flow through form 1065 to their personal return on form K1. Partners of a partnership cannot be on payroll/receive a W2. What is form 8832 used for? - This form is used by an LLC to elect to be classified as a corporation, a partnership, or an entity disregarded as separate from its owner. What are bad business debts...

Enrolled Agent SEE Exam Part 2 Tax Guide Questions and Answers 100% Solved What is a sole proprietorship? - An unincorporated business that is owned by one individual. The business has no existence apart from the owner and its liabilities are personal liabilities. Include income and expenses on personal tax return. What is a Qualified Joint Venture? - Can be elected by a married couple who jointly own and operate a trade or business. Both must materially participate in the busine...

Enrolled Agent Exam - Part 2: Business Questions with 100% Correct Answers (UNIT 1) Business and Requirements - ... Solo Proprietorship - can't be passed to a new owner, must be sold qualified joint venture - only married couples business -file separate Schedules C and separate Schedule SE Statutory employees, disregarded entities also must file Schedule C Partnerships - -must have at least 1 general partner joint undertaking to share expenses is not a partnership From 1065 amd K-1...

Enrolled Agent Exam Part 1 Questions with 100% Correct Answers How does the medical deduction work for 2018? - The medical deduction is your medical expenses minus 7.5% of your AGI. At what rate do you report interest income on a personal loan? - If you agree on an interest rate lower than the AFR, you must report interest income at the AFR (applicable federal rate) at the time of the loan. How do members of the clergy (pastors, preachers, etc.) report their housing allowance? - Mem...