Podcast
Finance Exam Prep
Hosted by Ran Chen, EA, CFP® · EN
Finance Exam Prep is a daily podcast designed to help future tax and finance professionals pass their certification and licensing exams with clarity and confidence.
Built and operated by OpenExamPrep, this podcast breaks down major tax exams into focused, easy-to-digest episodes covering the CPA & Enrolled Agent (EA) Exam, including Part 1 (Individuals), Part 2 (Businesses), and Part 3 (Representation, Practices, and Procedures). Each episode targets one key tax concept, common exam trap, or high-frequency test topic—making it ideal for studying during commutes, workouts, or short study sessions.
Created by Ran Chen, EA, CFP®, a financial professional and exam specialist who has personally passed multiple professional licensing exams, Tax Exam Prep was developed from firsthand experience with how complex—and often poorly explained—tax exam material can be. The goal is simple: make tax exam preparation clearer, more accessible, and more effective through structured explanations and modern learning tools. Whether you’re preparing for the EA Exam, transitioning into a tax career, or reviewing before test day, this podcast is designed to guide you step by step—one concept at a time.
Free practice tools, AI-powered explanations, and additional exam prep resources are available at: https://open-exam-prep.com/
49episodes
Episodes
Newest firstAll episodes
Enrolled Agent Exam [Part 2] 62, Home Office — Simplified vs Actual Method
3d ago00:03:51Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The simplified home office deduction is calculated at $5 per square foot, with a maximum of 300 square feet, capping the deduction at $1,500. - The actual method requires calculating the business-use percentage of the home to deduct a pro-rata share of indirect expenses like mortgage interest, utilities, and depreciation. - A taxpayer can choose between the simplified and actual methods each year, as it is an annual election. - Unused home office deductions due to income limitations can only be carried forward to future years under the actual method; there is no carryover with the simplified method. - A key exam topic is depreciation recapture upon the sale of the home, which only applies when the actual method was used, as the simplified method does not involve a depreciation deduction. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
Transcribe →Enrolled Agent Exam [Part 2] 61, Home Office Deduction — Exclusive and Regular Use
4d ago00:02:42Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The Home Office Deduction requires passing both the "regular use" and strict "exclusive use" tests. - To qualify, the home office must be the principal place of business, a location for meeting clients, or a separate, unattached structure. - The exclusive use test is waived for licensed daycare providers and for the regular use of a space for storing inventory or product samples. - Under §280A, the deduction is limited by the gross income from the business and cannot create or increase a net loss. - Any disallowed home office deduction due to income limitations can be carried forward to subsequent tax years.
Transcribe →Enrolled Agent Exam [Part 2] 60, Vehicle Expenses — Standard Mileage vs Actual
5d ago00:03:33Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The standard mileage rate offers simplicity, while the actual expense method requires detailed record-keeping of costs like gas, insurance, and depreciation. - The first-year choice is critical: using the standard mileage rate initially allows you to switch to the actual method later, but choosing the actual method first (with accelerated depreciation) prevents you from ever using the standard rate for that car. - For leased vehicles, choosing the standard mileage rate in the first year locks you into that method for the entire lease term. - Parking fees and tolls for business travel are deductible under both the standard and actual methods, which is a common exam trap. - A contemporaneous mileage log is mandatory for both methods; without it, the IRS can disallow the deduction. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
Transcribe →Enrolled Agent Exam [Part 2] 59, Meals — 50% vs 100% Deductible
6d ago00:04:04Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The default business meal deduction is 50%, a common starting point for exam questions. - Meals for company-wide employee events, like holiday parties, are an exception and are 100% deductible. - Food provided to the general public for promotional purposes is fully deductible. - Meals tied to entertainment are non-deductible unless the meal cost is stated separately on the invoice. - Use the mnemonic 'Parties, Public, and Prizes' to quickly recall the primary 100% deductible meal categories. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
Transcribe →Enrolled Agent Exam [Part 2] 58, Travel Expenses — Tax Home and Away from Home
1w ago00:03:21Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Your 'tax home' is defined as your main place of business, which may be different from your family's residence. - Travel expenses are only deductible if you are 'away from home' long enough to require sleep or rest. - A work assignment is considered temporary, allowing for deductible travel expenses, if it is realistically expected to last one year or less. - If a temporary job is extended to last more than one year, it becomes an indefinite assignment, and the location becomes your new tax home from the moment the expectation changes. - Deductible travel costs include transportation and lodging, but meal expenses are generally limited to a 50% deduction. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
Transcribe →Enrolled Agent Exam [Part 2] 57, Change of Accounting Method — Form 3115
1w ago00:03:14Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - When a taxpayer must file Form 3115 to request a change in accounting method. - How to calculate the Section 481(a) adjustment to prevent duplication or omission of income. - The timing difference for recognizing positive (4-year spread) versus negative (1-year deduction) adjustments. - The distinction between automatic and non-automatic consent procedures for accounting method changes. - How to differentiate a change in method from a correction of an error, which requires an amended return. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
Transcribe →Enrolled Agent Exam [Part 2] 56, Hybrid Accounting Method
1w ago00:02:49Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The hybrid method is a combination of cash and accrual accounting permitted by the IRS. - A business with inventory must use the accrual method for all purchases and sales of that merchandise. - Service-based income and general operating expenses can often be accounted for using the cash method under a hybrid system. - A common exam trap involves small businesses with inventory incorrectly attempting to use the pure cash method for all transactions. - Any accounting method chosen, including hybrid, must be used consistently and must clearly reflect income to be valid. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
Transcribe →Enrolled Agent Exam [Part 2] 55, Cash vs Accrual Accounting Method
1w ago00:05:09Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The core difference between cash basis (income when received, expenses when paid) and accrual basis (income when earned, expenses when incurred). - How the constructive receipt doctrine is a common exam trap for cash-basis taxpayers. - The three parts of the 'all-events test' required for deducting expenses under the accrual method, with a focus on economic performance. - Which entities, such as large C corporations and tax shelters, are required to use the accrual method. - The specifics of the small business taxpayer exception, including the gross receipts test that allows certain larger businesses to use the cash method.
Transcribe →Enrolled Agent Exam [Part 2] 54, Lower of Cost or Market (LCM)
2w ago00:02:17Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The Lower of Cost or Market (LCM) method requires inventory to be valued at the lesser of its historical cost or current market value. - For tax purposes, "market" is typically the current replacement cost of the inventory. - The LCM method cannot be used if the taxpayer uses the LIFO inventory method. - A write-down from cost to a lower market value results in a recognized loss in the current period. - The exam will likely test your ability to apply the LCM rule on an item-by-item basis to calculate the correct inventory valuation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
Transcribe →Enrolled Agent Exam [Part 2] 53, Inventory Methods — FIFO, LIFO, Specific ID
2w ago00:03:45Tap to summarizeThis podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How the FIFO method assumes the first units purchased are the first ones sold, typically resulting in higher taxable income during inflationary periods. - How the LIFO method assumes the last units purchased are the first ones sold, leading to a higher Cost of Goods Sold (COGS) and lower taxable income when prices are rising. - The critical LIFO conformity rule, which mandates that if a business uses LIFO for tax purposes, it must also use it for financial reporting. - The procedural requirement of filing Form 970 with the IRS to properly elect the LIFO inventory method. - The application of the Specific Identification method for unique, high-value inventory items where the actual cost of each item can be tracked. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
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