ENROLLED AGENT EXAM PREP PART 2 2026
PRACTICE TEST QUESTIONS AND DETAILED IRS
PROCEDURES AND TAXPAYER
REPRESENTATION BREAKDOWN FULL REVIEW
◉ Years to correct amortization error. Answer: 4
◉ Weight limit for passenger cars is xk. Answer: 6
◉ ADS uses XX method of depreciation and has a XX.. Answer:
Straight line, longer recovery
◉ LISTED PROPERTY UNDER 50% business use must use x
depreciation. Answer: ADS
◉ Tax exempt property must use X depreciation. Answer: ADS
◉ Tangible property used mostly out of US must use.... Answer: ADS
◉ Listed property used over 50% for business can use XX and X.
Answer: Section 179, MACRS
,◉ Recovery period for tractors and race horses. Answer: 3
◉ Recovery period for cars, trucks, office equipment, rental
furniture. Answer: 5
◉ Recovery period for office furniture and fixtures. Answer: 7
◉ Recovery period for barges, agriculture structure, trees, smart
property. Answer: 10
◉ Recovery period for waste treatment, communication plant.
Answer: 15
◉ Recovery period for farm building, certain sewers,. Answer: 20
◉ Recovery period for water utility and certain sewers. Answer: 25
◉ Recovery period for residential rental property. Answer: 27.5
◉ Recovery period for Nonresidential rental property X% or X%.
Answer: 31.5, 39
,◉ Recovery period for roadbed or railroad track or tunnel. Answer:
50
◉ Railroad recovery period convention (month, half month, etc.)?.
Answer: Half month
◉ Residential recovery period convention (month or half month)?.
Answer: Half month
◉ Nonresidential recovery period convention (month or half
month)?. Answer: Half month
◉ Section 179 includes cash but not XXXX. Answer: Like kind trade
basis
◉ the section 179 deduction is limited to (2018). Answer: 1000000
◉ Section 179 investment limit is (2018). Answer: 2500000
◉ Section 1245 includes personal, intangible and/or agricultural
structure property, but not.... Answer: Buildings
◉ Section 179 recapture is on Form. Answer: 4797
, ◉ Bonus deduction is taken before or after section 179?. Answer:
After
◉ Order for depreciation deduction. Answer: Section 179, bonus,
then regular
◉ Bonus deduction rates - % and %. Answer: 50, 100
◉ Bonus deduction can be taken on new or used property, or both?.
Answer: Both
◉ Goodwill and other intangibles can be amortized over X years.
Answer: 15
◉ Maximum startup expense writeoff is xk. Answer: 5
◉ Two depletion methods for natural resources - x and x. Answer:
Cost, percentage
◉ Oil and gas must use cost depletion unless XX or XX. Answer:
Independent producer, royalty owner
PRACTICE TEST QUESTIONS AND DETAILED IRS
PROCEDURES AND TAXPAYER
REPRESENTATION BREAKDOWN FULL REVIEW
◉ Years to correct amortization error. Answer: 4
◉ Weight limit for passenger cars is xk. Answer: 6
◉ ADS uses XX method of depreciation and has a XX.. Answer:
Straight line, longer recovery
◉ LISTED PROPERTY UNDER 50% business use must use x
depreciation. Answer: ADS
◉ Tax exempt property must use X depreciation. Answer: ADS
◉ Tangible property used mostly out of US must use.... Answer: ADS
◉ Listed property used over 50% for business can use XX and X.
Answer: Section 179, MACRS
,◉ Recovery period for tractors and race horses. Answer: 3
◉ Recovery period for cars, trucks, office equipment, rental
furniture. Answer: 5
◉ Recovery period for office furniture and fixtures. Answer: 7
◉ Recovery period for barges, agriculture structure, trees, smart
property. Answer: 10
◉ Recovery period for waste treatment, communication plant.
Answer: 15
◉ Recovery period for farm building, certain sewers,. Answer: 20
◉ Recovery period for water utility and certain sewers. Answer: 25
◉ Recovery period for residential rental property. Answer: 27.5
◉ Recovery period for Nonresidential rental property X% or X%.
Answer: 31.5, 39
,◉ Recovery period for roadbed or railroad track or tunnel. Answer:
50
◉ Railroad recovery period convention (month, half month, etc.)?.
Answer: Half month
◉ Residential recovery period convention (month or half month)?.
Answer: Half month
◉ Nonresidential recovery period convention (month or half
month)?. Answer: Half month
◉ Section 179 includes cash but not XXXX. Answer: Like kind trade
basis
◉ the section 179 deduction is limited to (2018). Answer: 1000000
◉ Section 179 investment limit is (2018). Answer: 2500000
◉ Section 1245 includes personal, intangible and/or agricultural
structure property, but not.... Answer: Buildings
◉ Section 179 recapture is on Form. Answer: 4797
, ◉ Bonus deduction is taken before or after section 179?. Answer:
After
◉ Order for depreciation deduction. Answer: Section 179, bonus,
then regular
◉ Bonus deduction rates - % and %. Answer: 50, 100
◉ Bonus deduction can be taken on new or used property, or both?.
Answer: Both
◉ Goodwill and other intangibles can be amortized over X years.
Answer: 15
◉ Maximum startup expense writeoff is xk. Answer: 5
◉ Two depletion methods for natural resources - x and x. Answer:
Cost, percentage
◉ Oil and gas must use cost depletion unless XX or XX. Answer:
Independent producer, royalty owner
