Free TCP CPA exam sample questions

PocketCPA publishes four TCP multiple-choice questions, four flashcards and one task-based simulation, free and with no account. TCP is Tax Compliance and Planning, and the full section holds 1,468 questions, 129 simulations and 150 flashcards across 16 blueprint groups.

How many TCP practice questions does PocketCPA have?

1,468 multiple-choice questions and 129 task-based simulations in TCP, covering 16 blueprint groups. Each one cites the standard or statute it tests.

A TCP question from the sample

Roland owns a 40% interest in a partnership that is a passive activity to him, with $50,000 of suspended passive losses attributable to it. He sells half of his holding, a 20% partnership interest, to an unrelated buyer in a fully taxable sale, recognizing a $30,000 gain. He retains the other 20% and has no other passive income for the year. What is the current-year treatment of the suspended losses?

  1. $25,000 is allowed, matching the half of the interest that was sold.
  2. $30,000 of the suspended losses is allowed and $20,000 remains suspended.
  3. None is allowed because gain on the sale of a partnership interest is portfolio income.
  4. All $50,000 is allowed because the sale was fully taxable and to an unrelated party.

The answer is B. Sec. 469(g) requires a fully taxable disposition of the taxpayer's entire interest in the activity to an unrelated party. Selling half the interest fails that test, so the suspended losses are not released. The transaction is not without effect, however: the $30,000 gain is passive activity gross income, and under ordinary Sec. 469 netting it absorbs $30,000 of the $50,000 of suspended losses. The remaining $20,000 stays suspended until the balance of the interest is disposed of or further passive income arises. The question is cited to IRC Sec. 469(g).

What does the TCP sample cover?

The four questions are drawn from the harder end of the TCP bank and spread across the section's blueprint areas: Tax Compliance and Planning for Individuals and Personal Financial Planning, Entity Tax Compliance, Entity Tax Planning, Property Transactions (disposition of assets). The sample is enough to judge the writing and not enough to study from, against 1,747 items in the section.

PocketCPA covers all six CPA exam sections with 11,896 cited questions and 1,071 lesson pages. See also CPA requirements by state, the cheapest route to a CPA, and how to check whether study material is current.

What the Uniform CPA Examination tests is defined by the AICPA, and coverage claims here are stated against the AICPA blueprints: AICPA: what is tested on the exam.