Podcast
Finance Exam Prep
Hosted by Ran Chen, EA, CFP® · ENGLISH
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/
123episodes
Episodes
Newest firstAll episodes
Enrolled Agent Exam [Part 2] 23, C Corp Distributions — Dividends, ROC, Capital Gain
Today00:04:20Tap 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 three-tier system for C Corp distributions: Dividend, Return of Capital, and Capital Gain. - The critical ordering rule for applying current and accumulated Earnings & Profits (E&P). - How to handle distributions when current E&P is positive but accumulated E&P is negative. - The correct tax treatment when current E&P is negative, requiring proration against positive accumulated E&P. - The "D-R-C" mnemonic to remember the distribution characterization sequence for the exam. 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] 22, Section 1202 Qualified Small Business Stock
Yesterday00:03:29Tap 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 five critical requirements for stock to qualify as QSBS: C-Corp, original issuance, under $50M in assets, active business, and a 5-year holding period. - How to calculate the maximum gain exclusion, which is limited to the greater of $10 million or 10 times the stock's basis. - Common exam traps such as S-Corp stock, secondary market purchases, and significant stock redemptions. - Which types of businesses, like specific professional services, are excluded under the 'active business' requirement. - How the stock's acquisition date determines the gain exclusion percentage, which can be 50%, 75%, or 100%.
Transcribe →Enrolled Agent Exam [Part 2] 21, Corporate Net Operating Losses — Post-TCJA Rules
2d ago00:04:07Tap 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: - Post-2017 corporate NOLs are carried forward indefinitely but generally cannot be carried back. - The NOL deduction is limited to 80% of taxable income, calculated before the NOL deduction itself. - Pre-2018 NOLs are used first and are not subject to the 80% taxable income limitation. - Exam questions often create scenarios with both pre-2018 and post-2017 NOLs to test ordering rules. - Exceptions to the no-carryback rule exist for specific entities like certain farms and non-life insurance companies. 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] 20, Corporate Alternative Minimum Tax (CAMT)
3d ago00:01:08Tap 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 CAMT applies only to corporations with an average annual adjusted financial statement income (AFSI) over $1 billion for a three-year period. - The tax is calculated as 15% of AFSI, which begins with book income from financial statements, not regular taxable income. - A corporation's final tax liability is the greater of its regular tax liability or the tentative minimum tax calculated under the CAMT. - A common exam trap is using a corporation's taxable income as the base for the 15% CAMT calculation instead of its adjusted financial statement income. - Paying the CAMT generates a tax credit that can be carried forward indefinitely to reduce the corporation's regular tax liability in future years. 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] 19, Accumulated Earnings Tax and PHC Tax
4d ago00:03:18Tap 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 Accumulated Earnings Tax is a 20% penalty on C-corps retaining earnings beyond reasonable business needs, with a minimum credit of $250,000 ($150,000 for PSCs). - The Personal Holding Company (PHC) Tax is a 20% penalty on certain C-corps that meet both a 60% passive income test and a 50% ownership test by five or fewer individuals. - A common exam trap is identifying what constitutes 'reasonable business needs' for the AET; vague or indefinite plans for expansion do not qualify. - The PHC tax rules are based on objective income and ownership tests, whereas the AET involves subjective intent to avoid shareholder taxes. - A corporation cannot be subject to both taxes in the same year; the PHC tax takes priority if the corporation meets the criteria for both. 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] 18, Dividends-Received Deduction (DRD)
5d ago00:03:25Tap 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 Dividends-Received Deduction (DRD) is exclusively for C corporations to mitigate triple taxation on dividends. - DRD percentages are set at 50%, 65%, or 100%, depending on the recipient corporation's ownership stake. - A critical exam trap is the taxable income limitation, which is waived if the full DRD creates or increases a Net Operating Loss (NOL). - To qualify, stock must be held for more than 45 days within a specific 91-day window around the ex-dividend date. - The DRD is reduced for dividends received from stock that was purchased with borrowed funds (debt-financed portfolio stock). 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] 17, C Corporation — Computing Taxable Income
6d ago00:03:18Tap 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 to calculate the 10% limitation for corporate charitable contributions based on modified taxable income. - The three ownership tiers for the Dividends-Received Deduction (DRD) and how they determine the deduction percentage (50%, 65%, or 100%). - The critical difference in capital loss treatment: corporations can only offset capital gains, unlike the individual $3,000 deduction against ordinary income. - The carryover rules for corporate net capital losses, which are carried back 3 years and forward 5 years as short-term losses. - The modern rules for Net Operating Losses (NOLs), which are carried forward indefinitely but limited to 80% of taxable income. 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] 16, C Corporation Formation — §351 Nonrecognition
1w ago00:04:06Tap 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 to qualify for a tax-free incorporation under Section 351 by meeting the property-for-stock and 80% control tests. - The critical distinction between transferring property (non-taxable) versus services (taxable) in exchange for stock. - How receiving "boot," such as cash or other property, can trigger gain recognition in an otherwise tax-free exchange. - The most common exam trap: how liabilities assumed by the corporation in excess of the property's basis create a taxable gain under Section 357(c). - A simple mental shortcut for calculating the shareholder's basis in the new corporate stock after the exchange. 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] 15, Check-the-Box Election — Form 8832
1w ago00:04:01Tap 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: - Eligible entities use Form 8832 to elect a tax classification other than their default, such as choosing to be taxed as a corporation. - An election's effective date has strict timing rules: it cannot be more than 75 days before the filing date or more than 12 months after. - Once an entity changes its classification via Form 8832, it is generally prohibited from changing it again for a 60-month period. - A common exam trap is confusing Form 8832 (the check-the-box election) with Form 2553, which is used specifically to elect S corporation status. - Understanding the default tax classifications (e.g., a multi-member LLC is a partnership) is key to knowing when an election is necessary. 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] 14, Single-Member LLC — Disregarded Entity Rules
1w 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: - A Single-Member LLC (SMLLC) is a disregarded entity for federal income tax purposes by default. - An SMLLC owned by an individual reports its business activities on the owner's personal tax return, typically using Schedule C. - When a corporation owns an SMLLC, the LLC's activities are treated as a branch or division on the corporation's tax return. - An SMLLC is regarded as a separate entity for employment tax purposes and must have its own EIN to file payroll tax returns like Form 941. - The EA exam frequently tests the exception: an SMLLC is disregarded for income tax but treated as a separate entity for employment and certain excise taxes. 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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