ENROLLED AGENT EXAM PREP PART 2 2026
REVISION NOTES AND STRUCTURED TAX
PRACTICE AND ETHICS OVERVIEW GUIDE
◉ Personal use limit on vacation homes to qualify as investment
property (does not exceed the greater of X days or X percent).
Answer: 14, 10
◉ Like kind exchange holding period on vacation homes (months
held before and after exchange). Answer: 24
◉ Like kind exchange of rental property, section 121 gain exclusion
on primary residence holding period (from exchange date, in years).
Answer: 5
◉ Related person like kind exchange holding period in years.
Answer: 2
◉ Section 1231 treatment requires horses and cattle must be held
for X years.. Answer: 2
◉ Section 1231 treatment usually has a X years period except horses
and cattle.. Answer: 1
,◉ Section 1202 Stock (Gain) exclude X% if Held for more than X
years. Answer: 100, 5
◉ Section 1045 rollover gain if held for X months. Answer: 6
◉ Holding period for replace the stock is X months. Answer: 6
◉ Section 1202 Limit on eligible gain is the greater of X times the
basis in QSB stock for the year, or $XM (minus earlier year gain).
Answer: 10, 10
◉ Form for disposition of property or condemned property....
Answer: 4797
◉ Like kind sale form. Answer: 8824
◉ Installment sale form. Answer: 6252
◉ Casualty and theft form. Answer: 4684
◉ Adjusted basis formula. Answer: Basis+cost -deductions-
depreciation
,◉ Taxable gain or loss calculation. Answer: Sales price-adjusted
basis
◉ Section 1231 gains and losses are X type of income, unless Xxxx..
Answer: ordinary, netting prior years losses
◉ Section 1231 Assets is X property. Answer: Business
◉ Section 1245 includes X or X property, except X.. Answer:
Depreciable, amortized, buildings
◉ Section 1250, Excess depreciation is recaptured as X income.
Answer: Ordinary
◉ Form for gains and losses. Answer: 4797
◉ Section 1245 and 1250 installment sale, recapture is taxable as X
income?. Answer: Ordinary
◉ Cannot use installment method to report gain on.... Answer:
securities
, ◉ Installment sales of multiple assets, calculate gain on each asset....
Answer: Separately
◉ Formula for charitable donation of Depreciable property given to
charity at death. Answer: FMV-depreciation recapture
◉ Boarding up business is not considered a x loss. Answer: Casualty
◉ Business casualty/theft loss is lesser of adjusted basis and
decrease in.... Answer: FMV
◉ Casualty theft loss of income, if adjusting before and after
inventory, insurance reimbursement is.... Answer: Taxable
◉ casualty gain calculation on like-kind replacement property
formula. Answer: Reimbursement-cost to replace
◉ Section 1244 Qualified Small Business Stock is stock purchase
from c-Corp, s-Corp, or both?. Answer: Both
◉ Section 1244 gains. Answer: Capital
◉ Section 1244 gains and losses should/should not be netted.
Answer: Should not
REVISION NOTES AND STRUCTURED TAX
PRACTICE AND ETHICS OVERVIEW GUIDE
◉ Personal use limit on vacation homes to qualify as investment
property (does not exceed the greater of X days or X percent).
Answer: 14, 10
◉ Like kind exchange holding period on vacation homes (months
held before and after exchange). Answer: 24
◉ Like kind exchange of rental property, section 121 gain exclusion
on primary residence holding period (from exchange date, in years).
Answer: 5
◉ Related person like kind exchange holding period in years.
Answer: 2
◉ Section 1231 treatment requires horses and cattle must be held
for X years.. Answer: 2
◉ Section 1231 treatment usually has a X years period except horses
and cattle.. Answer: 1
,◉ Section 1202 Stock (Gain) exclude X% if Held for more than X
years. Answer: 100, 5
◉ Section 1045 rollover gain if held for X months. Answer: 6
◉ Holding period for replace the stock is X months. Answer: 6
◉ Section 1202 Limit on eligible gain is the greater of X times the
basis in QSB stock for the year, or $XM (minus earlier year gain).
Answer: 10, 10
◉ Form for disposition of property or condemned property....
Answer: 4797
◉ Like kind sale form. Answer: 8824
◉ Installment sale form. Answer: 6252
◉ Casualty and theft form. Answer: 4684
◉ Adjusted basis formula. Answer: Basis+cost -deductions-
depreciation
,◉ Taxable gain or loss calculation. Answer: Sales price-adjusted
basis
◉ Section 1231 gains and losses are X type of income, unless Xxxx..
Answer: ordinary, netting prior years losses
◉ Section 1231 Assets is X property. Answer: Business
◉ Section 1245 includes X or X property, except X.. Answer:
Depreciable, amortized, buildings
◉ Section 1250, Excess depreciation is recaptured as X income.
Answer: Ordinary
◉ Form for gains and losses. Answer: 4797
◉ Section 1245 and 1250 installment sale, recapture is taxable as X
income?. Answer: Ordinary
◉ Cannot use installment method to report gain on.... Answer:
securities
, ◉ Installment sales of multiple assets, calculate gain on each asset....
Answer: Separately
◉ Formula for charitable donation of Depreciable property given to
charity at death. Answer: FMV-depreciation recapture
◉ Boarding up business is not considered a x loss. Answer: Casualty
◉ Business casualty/theft loss is lesser of adjusted basis and
decrease in.... Answer: FMV
◉ Casualty theft loss of income, if adjusting before and after
inventory, insurance reimbursement is.... Answer: Taxable
◉ casualty gain calculation on like-kind replacement property
formula. Answer: Reimbursement-cost to replace
◉ Section 1244 Qualified Small Business Stock is stock purchase
from c-Corp, s-Corp, or both?. Answer: Both
◉ Section 1244 gains. Answer: Capital
◉ Section 1244 gains and losses should/should not be netted.
Answer: Should not
