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/
56episodes
Episodes
Newest firstAll episodes
Enrolled Agent Exam [Part 2] 69, Work Opportunity Tax Credit (WOTC)
2w ago00:03:30Tap 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 WOTC is a general business credit for hiring individuals from specific targeted groups who face employment barriers. - The credit is calculated as either 25% (for 120-399 hours worked) or 40% (for 400+ hours worked) of qualified first-year wages. - Qualified wages are generally capped at the first $6,000 of earnings, resulting in a maximum credit of $2,400 per employee for most groups. - Employers MUST file Form 8850 with their state workforce agency within 28 days of the employee's start date to be eligible for the credit. - A critical exam trap: The employer's deduction for salaries and wages must be reduced by the amount of the WOTC claimed. 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] 68, Research and Development Credit (§41)
2w ago00:03:22Tap 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-2021, §174 R&D costs must be capitalized and amortized over 5 years for domestic research or 15 years for foreign research. - The §41 credit is calculated on Qualified Research Expenses (QREs), such as wages and supplies, but excludes costs like research after commercial production begins. - Claiming the R&D credit requires you to reduce your otherwise allowable deduction for those same research expenses by the amount of the credit. - A Qualified Small Business may elect to use the R&D credit to offset payroll taxes. - To be a Qualified Small Business for the payroll tax offset, the business must have less than $5 million in gross receipts and be in its first five years of having gross receipts. 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] 67, W-2 Wage and UBIA Limitation for QBI
3w ago00:03:12Tap 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 two separate QBI limitations for high-income taxpayers with non-SSTB businesses. - The specific formula: the QBI deduction is limited to the greater of (a) 50% of W-2 wages or (b) 25% of W-2 wages plus 2.5% of UBIA. - A critical exam trap: always use the Unadjusted Basis Immediately after Acquisition (UBIA), not the depreciated or adjusted basis of property. - The key difference between the limitation for a non-SSTB and the complete disallowance of the QBI deduction for a high-income SSTB owner. - A mental shortcut for remembering that the UBIA part of the formula is designed to benefit capital-intensive businesses. 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] 66, QBI Phase-out and SSTB Limitations
3w ago00:03:46Tap 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 definition of a Specified Service Trade or Business (SSTB) for the QBI deduction. - The specific 2025 taxable income thresholds that trigger the QBI phase-out rules. - How to calculate the proportional phase-out of the QBI deduction for an SSTB within the income limitation range. - The key difference in how limitations apply to SSTBs versus non-SSTBs once income exceeds the initial threshold. - Why the SSTB QBI deduction is completely disallowed once taxable income surpasses the top of the phase-out range. 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] 65, Section 199A QBI Deduction Overview
3w ago00:03:44Tap 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 QBI deduction offers up to a 20% deduction on income from pass-through entities like sole proprietorships, S-corps, and partnerships. - For 2024, the deduction is simplest for taxpayers with taxable income below $191,950 (Single) or $383,900 (Married Filing Jointly). - Above these income thresholds, the deduction for Specified Service Trades or Businesses (SSTBs) like law and accounting is phased out and eventually eliminated. - For non-SSTBs above the income thresholds, the deduction is limited by a formula based on W-2 wages and the unadjusted basis of business property. - A final overall limit applies: the QBI deduction cannot exceed 20% of taxable income minus net capital gains, a common exam trap. 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] 64, Excess Business Losses — §461(l)
3w ago00:03:48Tap 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 an excess business loss using the inflation-adjusted thresholds for different filing statuses. - That any disallowed excess business loss is treated as a Net Operating Loss (NOL) carryforward to subsequent tax years. - The critical ordering rule: basis, at-risk, and passive activity loss limitations must be applied before the §461(l) limitation. - Why you must aggregate all trade or business income and losses before comparing the net amount to the annual threshold. - How the excess business loss limitation applies only to noncorporate taxpayers and is calculated on Form 461. 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] 63, Net Operating Loss (NOL) — Carryforward Rules
3w 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: - Post-2017 Net Operating Losses (NOLs) have an indefinite carryforward period but generally cannot be carried back. - The deduction for post-2017 NOLs is limited to 80% of the taxable income in the carryover year, calculated before the NOL deduction itself. - Pre-2018 NOLs follow older rules: a 2-year carryback and a 20-year carryforward, with the ability to offset 100% of taxable income. - Specific exceptions exist, such as a 2-year carryback for certain farming losses, which are common exam trick questions. - Use the mnemonic "After '17, NOLs go on for infinity, but they're only eighty percent mighty" to remember the indefinite carryforward and 80% limitation for post-2017 NOLs. 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] 62, Home Office — Simplified vs Actual Method
3w 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
3w 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
4w 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
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