100+ Free ACAT ATA Practice Questions
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Under OBBBA permanency, the QBI deduction under IRC 199A allows eligible pass-through owners to deduct what maximum percentage of qualified business income?
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Key Facts: ACAT ATA Exam
100
Exam Questions
ACAT ATA candidate page
3 hours
Exam Time
ACAT ATA candidate page
70
Passing Score
ACAT ATA candidate page
$250
Exam Fee
ACAT fee schedule
$50
Credential Activation
ACAT activation form
$15M
2026 Estate Exemption (OBBBA)
IRS Rev. Proc. 2025-32 / OBBBA
AFSP
Refresher Exam Exempt
ACAT and IRS AFSP rules
ACAT ATA is a 100-question, 3-hour online proctored exam administered by the Accreditation Council for Accountancy and Taxation. The single-exam fee is $250 plus a $50 credential activation fee. ATA tests advanced advisory work — individual planning, entity selection, partnership 704(b)/(c) and 754 step-ups, S corporation reasonable comp and AAA, C corporation 351/332/355 transactions, trust DNI and grantor rules, the OBBBA $15 million estate and gift exemption, controversy procedure, and Circular 230 written advice. ACAT recommends five years of tax experience, including three in public accounting, before sitting.
Sample ACAT ATA Practice Questions
Try these sample questions to test your ACAT ATA exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1For tax year 2026, what is the top marginal individual income tax rate that applies under the OBBBA-permanent TCJA bracket structure?
2What is the 2026 standard deduction for a married couple filing jointly under age 65?
3Under OBBBA, what is the 2026 cap on the state and local tax (SALT) itemized deduction for most taxpayers?
4An advisor is computing the 3.8% Net Investment Income Tax (NIIT) for a single client with $250,000 of modified AGI in 2026, including $40,000 of interest, dividends, and capital gains. What is the NIIT?
5Which of the following is NOT a preference or adjustment that increases AMTI under the individual AMT?
6What is the 2026 long-term capital gains rate that applies to a single filer with taxable income of $60,000, of which $10,000 is net long-term capital gain?
7A client wants to deduct mortgage interest on $900,000 of acquisition indebtedness on a primary residence taken out in 2026. How much of the principal qualifies for the mortgage interest deduction?
8Under OBBBA permanency, the QBI deduction under IRC 199A allows eligible pass-through owners to deduct what maximum percentage of qualified business income?
9Which type of trade or business is treated as a Specified Service Trade or Business (SSTB) subject to the high-income 199A phase-out?
10A client is choosing between a C corporation and an S corporation for a closely held operating business that distributes most of its earnings annually. What is the most significant federal tax disadvantage of the C corporation?
About the ACAT ATA Exam
The Accredited Tax Advisor (ATA) is ACAT's advanced tax credential focused on planning and advisory services for complex returns. The exam covers individual tax planning, business entity selection, partnership and LLC taxation, S corporation and C corporation taxation, trust and estate income taxation, gift and estate tax, retirement planning, tax controversy and representation, and Circular 230 ethics. ATA holders qualify for the IRS Annual Filing Season Program Record of Completion without taking the AFSP Annual Refresher Course or exam.
Questions
100 scored questions
Time Limit
3 hours
Passing Score
70
Exam Fee
$250 (plus $50 activation) (Accreditation Council for Accountancy and Taxation (ACAT))
ACAT ATA Exam Content Outline
Individual Tax Planning
2026 brackets and 37% top rate, $16,100/$32,200/$24,150 standard deduction, $40,000 SALT cap (OBBBA), AMT thresholds, 3.8% NIIT, 0.9% Additional Medicare Tax, capital-gain harvesting, and OBBBA-permanent tip/overtime/auto-loan-interest deductions
Business Entity Selection
Sole proprietor vs partnership vs LLC vs S corporation vs C corporation, 21% corporate rate, 199A QBI 20% deduction (OBBBA permanent), reasonable compensation, fringe benefit deductibility (>2% S corp shareholders), and basis at risk versus passive loss limits
Partnership and LLC Taxation
Section 704(b) substantial economic effect, 704(c) built-in gain allocations, inside vs outside basis, 752 recourse vs nonrecourse liability allocation, guaranteed payments, 736 retiring partner payments, 754 election with 734(b)/743(b) step-ups, and disguised sales
S Corporation and C Corporation Taxation
S corp eligibility (100 shareholder limit, single class of stock), reasonable compensation, 1374 built-in gains tax, 1375 passive investment income tax, AAA/OAA/PTI ordering, basis ordering (loss limit), 351 contributions, 332/337 liquidations, 355 spin-offs, 382 NOL limits, and accumulated earnings tax under 531
Trust and Estate Income Taxation
Simple vs complex trusts, grantor trust rules (671-679), distributable net income (DNI) and tier system, Schedule K-1 character flow-through, 642(c) charitable deduction, 663(b) 65-day rule, compressed trust brackets (37% over ~$15,650 in 2026), and Form 1041
Estate, Gift, and GST Tax
$15M basic exclusion amount per OBBBA (2026), $19,000 annual exclusion, GST tax, portability via DSUE election on Form 706, 1014 stepped-up basis at death, 2032A special-use valuation, 6166 estate tax installments, minority and lack-of-marketability discounts
Retirement and Tax Controversy
Qualified plan design, 2026 IRA limit ($7,500), 401(k) $24,500, SECURE 2.0 10-year inherited IRA payout, 6501 statute of limitations (3 yr / 6 yr / no limit for fraud), 6651 failure-to-file/pay, 6662 20% accuracy penalty, 7491 burden of proof, OIC, IA, CDP and CAP appeals
Ethics and Circular 230
Circular 230 10.21 (knowledge of client error), 10.22 diligence, 10.27 contingent-fee restrictions, 10.29 conflicts of interest, 10.34 standards for returns and documents, 10.35-10.37 written advice and covered opinions, and 10.51 incompetence/disreputable conduct
How to Pass the ACAT ATA Exam
What You Need to Know
- Passing score: 70
- Exam length: 100 questions
- Time limit: 3 hours
- Exam fee: $250 (plus $50 activation)
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
ACAT ATA Study Tips from Top Performers
Frequently Asked Questions
What is the format of the ACAT ATA exam?
The ATA is a 100-question multiple-choice online proctored exam administered by ACAT. Candidates have 3 hours to complete it, and 70 on a 0-100 scale is the passing score. The exam tests advanced individual planning, business entity taxation, partnerships and LLCs, S and C corporations, trusts and estates, gift and estate tax, retirement planning, controversy and representation, and Circular 230 ethics.
How much does the ACAT ATA exam cost in 2026?
The ATA exam fee is $250 in 2026, paid to ACAT at registration. After passing, candidates submit a $50 credential activation form to receive the ATA designation. Annual renewal is $150 for a single ACAT credential. Holders must complete 40 hours of CPE per year, including 3 hours in ethics. Always verify current pricing on the ACAT registration page before paying.
What is the difference between the ATA and the ATP?
The Accredited Tax Preparer (ATP) is ACAT's entry-level Form 1040 credential focused on individual return preparation. The Accredited Tax Advisor (ATA) is the advanced credential and tests planning and advisory work across complex individual returns, partnerships, S and C corporations, trusts, estates, and gift tax. ACAT recommends five years of tax experience (three in public accounting) before sitting for the ATA.
Does the ATA qualify me for the IRS Annual Filing Season Program (AFSP)?
Yes. ACAT ATA credential holders are exempt from the AFSP Annual Refresher Course and Annual Filing Season exam. They still need an active PTIN, the required CE, and consent to Circular 230 to receive the AFSP Record of Completion. ATA holders gain limited IRS representation rights for returns they prepared and signed, similar to other AFSP participants.
How long should I study for the ATA exam?
Most candidates plan 100 to 150 hours of dedicated study spread across 10 to 18 weeks. The biggest blocks of time should go to partnership taxation (704(b)/(c), 752, 754), S corporation rules (reasonable comp, AAA, 1374 BIG), and trust/estate income tax (DNI, grantor rules), since these are the highest-leverage advisory topics. Build in dedicated review for OBBBA changes — the $15 million unified estate and gift exemption, $40,000 SALT cap, and permanent QBI deduction.
What is the 2026 estate and gift tax exemption?
Under the One Big Beautiful Bill Act, the basic exclusion amount for federal estate and gift tax is $15 million per individual for 2026 (up from $13.99 million in 2025), and the GST exemption matches at $15 million. The annual gift tax exclusion stays at $19,000 per donee. OBBBA made the higher exemption permanent and indexed it to inflation, eliminating the previously scheduled January 1, 2026 sunset that would have cut the exemption roughly in half.
How is the ATA different from the EA?
The Enrolled Agent (EA) is the IRS's three-part exam covering individual, business, and representation, and grants unlimited representation rights before the IRS for any taxpayer and any tax matter. The Accredited Tax Advisor (ATA) is a single 100-question advisory exam from ACAT — narrower in scope but specifically pitched at planning depth for complex returns, trusts, estates, and entity work. Many practitioners hold both: the EA for representation rights and the ATA to signal planning expertise.