Business Taxation
Master business entities, MACRS depreciation, and property transactions with comprehensive practice tests and official IRS references.
Questions
Time limit
Pass rate
Study hours
What's covered in Part 2
Focuses on business entities, income & deductions, property transactions, and individual taxpayer issues for business owners.
Business Entities
Sole proprietorships, partnerships, S corporations, C corporations, and entity selection.
Business Income & Deductions
Revenue recognition, COGS, depreciation, business expenses, and deductions.
Specialized Business Topics
Accounting methods, like-kind exchanges, business credits, and advanced topics.
Property Transactions
Gain/loss recognition, Section 1231, depreciation recapture, and basis calculations.
Individual Taxpayer Issues
Self-employment tax, QBI deduction, retirement plans, and home office deductions.
Featured study topics
Deep dive into critical business taxation concepts
C Corporation: C Corp Formation (Sec 351) & Basis
Business Entities
Understanding c corp formation (sec 351) & basis is essential for the EA exam. This topic includes official IRS guidance and real-world applications.
C Corporation: Corporate Income Tax & Dividends
Business Entities
Understanding corporate income tax & dividends is essential for the EA exam. This topic includes official IRS guidance and real-world applications.
Partnership: Partner Basis & K-1 Allocation
Business Entities
Understanding partner basis & k-1 allocation is essential for the EA exam. This topic includes official IRS guidance and real-world applications.
Partnership: Partnership Distributions
Business Entities
Understanding partnership distributions is essential for the EA exam. This topic includes official IRS guidance and real-world applications.
Partnership: Partnership Formation & Contributions
Business Entities
Understanding partnership formation & contributions is essential for the EA exam. This topic includes official IRS guidance and real-world applications.
S Corporation: S Corp Election & Termination
Business Entities
Understanding s corp election & termination is essential for the EA exam. This topic includes official IRS guidance and real-world applications.
Plus 21 more topics covering all of Part 2
Critical Part 2 concepts
MACRS Depreciation System
Modified Accelerated Cost Recovery System (MACRS) is the primary depreciation method for business property. Includes property classes, conventions (half-year, mid-quarter), depreciation methods (200% DB, 150% DB, straight-line), and ADS requirements.
Section 179 Expensing
Immediate expensing election allowing businesses to deduct the full cost of qualifying property in the year placed in service. Critical understanding of business income limitations and interaction with MACRS.
Business Entities
Comprehensive coverage of sole proprietorships (Schedule C), partnerships (Form 1065, K-1 allocations), S corporations (Form 1120-S), and C corporations (Form 1120). Includes formation, taxation, and distributions.
QBI Deduction
Section 199A Qualified Business Income deduction for pass-through entities. Includes W-2 wage limitations, UBIA of qualified property, and specified service trade or business (SSTB) restrictions.
IRS resources for Part 2
Essential guide to MACRS, Section 179, and depreciation methods (100+ pages)
Comprehensive resource for sole proprietorships and small business taxation
Detailed guidance on deductible business expenses
Official tax code for MACRS depreciation
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