100+ Free CPA TCP Practice Questions

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Question 1

Score: 0/0

Under the CPA Evolution model, which three sections are the core sections that all candidates must pass before selecting a discipline?

AUD, FAR, BEC

AUD, FAR, REG

FAR, REG, TCP

AUD, REG, BAR

to track

2026 Statistics

Key Facts: CPA TCP Exam

75/99

Passing Score

AICPA scaled score

4 hours

Exam Length

5 testlets — 68 MCQs + 7 TBSs

50/50

MCQ vs TBS Weight

AICPA scoring policy

~75-80%

Pass Rate

AICPA 2024-2025 cumulative

$200-$390

Section Fee

Varies by state board + NASBA

July 1, 2026

OBBBA Testing Begins

AICPA 6-month policy

TCP is the CPA Evolution tax discipline — 4 hours, 68 MCQs + 7 TBSs, scored 50/50 weighted on a 0-99 scaled score with 75 to pass. Highest pass rate among the three disciplines (~75-80%). Sit any day at a Prometric center; score releases follow quarterly windows. Plan 120-160 study hours after REG. OBBBA provisions effective in 2024-2025 first appear July 1, 2026. Fee runs $200-$390 per attempt depending on state board.

Sample CPA TCP Practice Questions

Try these sample questions to test your CPA TCP exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the CPA Evolution model, which three sections are the core sections that all candidates must pass before selecting a discipline?

A.AUD, FAR, BEC

B.AUD, FAR, REG

C.FAR, REG, TCP

D.AUD, REG, BAR

Explanation: Under the CPA Evolution model effective January 2024, all candidates must pass three core sections — Auditing & Attestation (AUD), Financial Accounting & Reporting (FAR), and Regulation (REG) — and then choose one discipline from BAR, ISC, or TCP. BEC was retired when CPA Evolution launched.

2How is the TCP section's score calculated between MCQs and TBSs?

A.60% MCQ / 40% TBS

B.50% MCQ / 50% TBS

C.70% MCQ / 30% TBS

D.100% MCQ

Explanation: All four CPA Evolution sections, including TCP, weight multiple-choice questions 50% and task-based simulations 50%. TCP delivers 68 MCQs and 7 TBSs across five testlets in a 4-hour appointment.

3When are 2024-2025 effective-date provisions of the One Big Beautiful Bill Act (OBBBA) first eligible for testing on TCP?

A.January 1, 2026

B.April 1, 2026

C.July 1, 2026

D.October 1, 2026

Explanation: The AICPA's standard CPA Exam policy is that new tax law is eligible for testing six months after enactment for already-effective provisions. OBBBA was signed July 4, 2025, so its 2024-2025 effective-date provisions become testable on REG and TCP starting July 1, 2026 (the third quarterly window of 2026).

4A 50-year-old taxpayer with $200,000 in modified AGI converts $80,000 from a traditional IRA to a Roth IRA in 2026. Which statement is correct regarding the Roth conversion?

A.The conversion is tax-free because the taxpayer is over age 50

B.The $80,000 is included in 2026 ordinary income; no 10% early-withdrawal penalty applies to the conversion itself

C.Only the earnings portion of $80,000 is taxable; basis is recovered first

D.The conversion is barred because MAGI exceeds the Roth contribution phase-out

Explanation: Roth conversions are taxable in the year of conversion to the extent the converted amount represents pre-tax dollars (here, the full $80,000 was deductible traditional IRA money). The 10% additional tax under §72(t) does not apply to a conversion (only to non-conversion early distributions). The MAGI Roth contribution phase-out does not apply to conversions — that phase-out limit was repealed in 2010.

5The Net Investment Income Tax (NIIT) under §1411 applies at a rate of:

A.0.9% on wages above the threshold

B.3.8% on the lesser of net investment income or MAGI over threshold

C.15% on long-term capital gains

D.20% on qualified dividends

Explanation: §1411 imposes a 3.8% surtax on the lesser of (a) net investment income, or (b) modified AGI in excess of the threshold ($200,000 single, $250,000 MFJ, $125,000 MFS). The 0.9% Additional Medicare Tax is a separate surtax on earned income.

6Which of the following is NOT subject to the 3.8% NIIT?

A.Interest on corporate bonds

B.Dividends from a publicly traded stock

C.Wages from self-employment

D.Net gain from sale of a passive partnership interest

Explanation: Wages and self-employment income are excluded from net investment income under §1411(c)(1) and (c)(6) because they are subject instead to FICA/SE tax (and the 0.9% Additional Medicare Tax). NIIT covers passive investment-type income: interest, dividends, royalties, rents, capital gains, and gains from passive partnership/S-corp interests.

7Under SECURE 2.0, the required beginning date for required minimum distributions (RMDs) from a traditional IRA is age:

A.70½ for everyone

B.72 for everyone

C.73 for individuals turning 72 in 2023 or later (rising to 75 in 2033)

D.75 effective immediately

Explanation: SECURE 2.0 (December 2022) raised the RMD beginning age from 72 to 73 for individuals who reach age 72 after December 31, 2022. The age increases again to 75 for those who reach age 74 after December 31, 2032. The first RMD must be taken by April 1 of the year following the year the individual reaches the applicable age.

8A taxpayer fails to take a $20,000 RMD on time in 2026. Under SECURE 2.0, the excise tax penalty is:

A.50% of the missed RMD

B.25%, reduced to 10% if corrected within the correction window

C.10% in all cases

D.No penalty if corrected before the IRS audits

Explanation: SECURE 2.0 reduced the §4974 excise tax for missed RMDs from 50% to 25%, and further reduces it to 10% if the shortfall is corrected (and Form 5329 filed) within the two-year correction window. The pre-2023 50% penalty no longer applies.

9The federal annual gift tax exclusion for 2026 is approximately:

A.$15,000 per donee

B.$17,000 per donee

C.$19,000 per donee

D.$25,000 per donee

Explanation: After inflation adjustments under §2503(b), the annual gift tax exclusion is $19,000 per donee in 2026 (up from $18,000 in 2024 and $17,000 in 2023). Married couples electing gift-splitting can transfer $38,000 per donee. Gifts within the exclusion do not consume any lifetime exemption.

10Under OBBBA, the federal estate and gift tax basic exclusion amount was made permanent at what indexed level beginning in 2026?

A.$5 million (2017 sunset level)

B.$10 million baseline indexed (about $13.99M for 2025) — sunsetting after 2025 under TCJA

C.$15 million per individual indexed for inflation, made permanent

D.$25 million per individual

Explanation: OBBBA (One Big Beautiful Bill Act, signed July 2025) made permanent a $15 million per-individual estate and gift tax basic exclusion beginning in 2026, indexed for inflation, replacing the TCJA $10M baseline that was scheduled to sunset to roughly $5M (indexed) after 2025. Married couples with portability can shield $30 million.

About the CPA TCP Exam

Tax Compliance & Planning (TCP) is one of three CPA Evolution discipline sections (alongside BAR and ISC). It extends the REG core section into nonroutine federal tax compliance and advanced tax planning. The 2026 blueprint covers four areas: (I) advanced individual tax and personal financial planning — Roth conversions, NIIT, AMT, kiddie tax, estate/gift, SECURE 2.0 RMD changes, life insurance taxation; (II) entity tax compliance — partnership §704(b)/§704(c) allocations, §734/§743 basis adjustments, §174 R&D capitalization, §163(j) interest limit, §199A QBI, §1374 built-in gains, GILTI/FDII/BEAT; (III) property transactions — §1031, §1014 step-up, §1245/§1250 recapture, §453 installment sales, §1202 QSBS; (IV) entity tax planning — choice of entity, consolidations, §382 NOL limit, §355 spin-offs, S-corp reasonable compensation. OBBBA (One Big Beautiful Bill Act, signed July 2025) becomes testable July 1, 2026.

Questions

75 scored questions

Time Limit

4 hours (68 MCQs + 7 TBSs across 5 testlets)

Passing Score

75 on a 0-99 scaled score

Exam Fee

$200-$390 per section (state-dependent) (AICPA / NASBA / Prometric (in-person test centers))

CPA TCP Exam Content Outline

30-40%

Tax Compliance & Planning for Individuals & Personal Financial Planning

Advanced individual taxation: Roth conversions, NIIT (§1411), AMT including ISO bargain element, kiddie tax (§1(g)), multistate residency and credits. Personal financial planning: 529 and Coverdell, SECURE 2.0 RMD ages 73→75, IRA/Roth contribution rules, estate and gift tax (annual exclusion ~$19K, OBBBA $15M lifetime exemption, GST), portability §2010(c), life insurance taxation (§79, §72 FIFO/LIFO, MEC, §101(j) EOLI), QCD, charitable strategies (60%/30%/20% AGI ceilings), §72(t) early-distribution exceptions.

30-40%

Entity Tax Compliance

C corp: NOL §172 (no carryback, indefinite carryforward, 80% limitation), §163(j) interest limit (EBITDA-based ATI under OBBBA), §199A QBI, DRD §243, accumulated earnings §531, PHC §541, Schedule M-1, CAMT 15%. S corp: §1374 BIG tax 5-year window, AAA / AE&P distribution ordering, basis (stock vs. debt). Partnership: §704(b) substantial economic effect, §704(c) built-in gain allocation, §734(b)/§743(b) basis adjustments under §754, §731-§736 distributions, §707(c) guaranteed payments. International: GILTI §951A, FDII §250, BEAT §59A, Subpart F.

10-20%

Property Transactions (Disposition of Assets)

§1031 like-kind (real property only post-TCJA), §1014 date-of-death step-up, §1015 carryover gift basis (dual-basis rule), §1245 personal property recapture, §1250 / unrecaptured §1250 gain (25% max), §121 home sale exclusion ($250K/$500K), §267 related-party loss disallowance and §267(d) relief, §351 transfers to corp, §368 reorganizations (A/B/C/D/E/F/G), §721 contributions to partnership, §1202 QSBS exclusion, §1091 wash sale, §1033 involuntary conversions, §1400Z-2 Opportunity Zones, §83(b) elections, installment sales §453.

10-20%

Entity Tax Planning

Choice of entity (C vs. S vs. partnership): 21% corporate rate + DRD vs. pass-through with §199A; §1374 BIG exposure; §1361 eligibility. §331/§332 corporate liquidations. §1501 consolidated returns and §382 NOL ownership-change limitation (FMV × LT tax-exempt rate). §355 spin-offs (active-business 5-year test, no device, business purpose). S-corp reasonable compensation (Watson v. U.S.). §453(g) related-party installment sales. §301/§316 distribution ordering (current E&P, accumulated E&P, basis, capital gain). §311(b) appreciated property distributions.

How to Pass the CPA TCP Exam

What You Need to Know

Passing score: 75 on a 0-99 scaled score
Exam length: 75 questions
Time limit: 4 hours (68 MCQs + 7 TBSs across 5 testlets)
Exam fee: $200-$390 per section (state-dependent)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CPA TCP Study Tips from Top Performers

1Pass REG immediately before TCP — content overlap is large and momentum compounds; allocate 60-80 hours of net new TCP material over 8-12 weeks

2Memorize the §704(b) substantial-economic-effect tests and the §704(c) built-in gain allocation methods (traditional, traditional with curative, remedial) — TBS staples

3Drill §734(b) and §743(b) basis adjustments under a §754 election — including when adjustments are mandatory (substantial built-in loss, substantial basis reduction)

4Know the SECURE 2.0 RMD age changes (72→73 in 2023, 75 in 2033) and the §72(t) exceptions (especially the SECURE-era additions: birth/adoption $5K, domestic abuse $10K, terminal illness)

5OBBBA — bonus depreciation 100% restored for property post 1/19/2025, §179 expanded to ~$2.5M, §174 domestic SRE expensing restored, $15M estate exemption, SALT $40K — all testable from July 1, 2026

6Build a one-page entity choice matrix: 21% C-corp + DRD vs. pass-through + §199A QBI; tax rate, SE tax, basis, distribution flexibility, exit options

7For property transactions, cement the order: realized gain → §1245/§1250 recapture (ordinary) → unrecaptured §1250 (25% max) → §1231/long-term capital

8Don't underestimate the international topics — GILTI, FDII, BEAT and Subpart F appear on TCP TBSs and many candidates skip them

Frequently Asked Questions

When do OBBBA tax law changes become testable on TCP?

OBBBA (One Big Beautiful Bill Act) was signed July 4, 2025. Per AICPA's six-month-after-effective-date rule, provisions effective in 2024-2025 first appear on TCP starting July 1, 2026 (the Q3 2026 testing window). Candidates testing January-June 2026 are not tested on these. Provisions effective in 2026 follow the standard 6-month rule from their effective date.

How does TCP work in the CPA Evolution model?

Effective January 2024, every CPA candidate passes 3 core sections (AUD, FAR, REG) plus 1 of 3 disciplines: BAR (Business Analysis & Reporting), ISC (Information Systems & Controls), or TCP (Tax Compliance & Planning). All sections must be passed within a 30-month rolling window (extended from 18 months in 2024). TCP is the natural choice for tax-focused candidates.

What is on the TCP exam?

TCP is 4 hours: 68 MCQs and 7 TBSs across 5 testlets, weighted 50/50. Four content areas: (I) Tax Compliance & Planning for Individuals & PFP 30-40%; (II) Entity Tax Compliance 30-40%; (III) Property Transactions / Asset Dispositions 10-20%; (IV) Entity Tax Planning 10-20%. Skill levels are weighted toward Application and Analysis under the 2026 blueprint.

What's the TCP pass rate?

TCP has run the highest pass rate of any CPA section — roughly 75-80% cumulative in 2024-2025 — versus BAR ~42% and ISC ~68%. The high TCP pass rate reflects strong self-selection (tax candidates choose it) and significant content overlap with REG, which most candidates take immediately before TCP.

How does TCP differ from REG?

REG covers foundational individual tax (filing status, gross income, deductions, basic property transactions), business law, ethics, and basic entity tax. TCP extends REG into nonroutine individual tax (Roth conversions, NIIT, AMT, kiddie tax), personal financial planning (529, SECURE 2.0, estate/gift), advanced entity tax (§704(b)/§704(c), §1374 BIG, §163(j), GILTI), and entity tax planning (choice of entity, §382, §355).

What is the TCP exam fee and when can I sit?

TCP fees vary by state board (typically $200-$390 per section, plus NASBA application/registration). Continuous testing means you can sit any day Prometric is open, but score releases follow quarterly publication windows from AICPA: Q1 January-March, Q2 April-June, Q3 July-September, Q4 October-December. Your score holds toward the 30-month rolling window starting with your first section passed.