Wages, Interest, Dividends, and Other Income
Common income items still require classification: interest, dividends, tips, awards, gambling, and cancellation of debt can follow different rules and forms.
Study this topicPart 1 / Individuals
Income and Assets
Classify individual income, retirement distributions, pass-through items, and property transactions. The exam emphasizes basis, character, timing, and the correct reporting path.
8 focused lessons
Learn the rule, then work the decision.
Every lesson pairs a direct answer with a practical scenario, a common wrong turn, and a repeatable study action.
Rental and Royalty Income
Rental and royalty items require the correct activity classification, income recognition, expense allocation, and possible passive-loss treatment.
Study this topicPass-Through Income and QBI
Schedule K-1 items retain separate character, while the qualified business income deduction applies only after entity, activity, income, and limitation rules are tested.
Study this topicTraditional and Roth IRAs
IRA questions turn on contribution eligibility, deductibility, basis, conversion, distribution ordering, and reporting, not merely the account label.
Study this topicRetirement Distributions and RMDs
Retirement distributions may include taxable income, basis recovery, rollovers, required minimum distributions, and additional-tax exceptions.
Study this topicBasis of Purchased, Gifted, and Inherited Property
Property basis depends on how it was acquired and may require separate gain and loss computations for gifts.
Study this topicCapital Gains, Home Sales, and Installment Sales
A property disposition requires amount realized, adjusted basis, character, holding period, exclusions, and timing of recognized gain.
Study this topicAdjustments to Income
Adjustments such as deductible retirement contributions, HSA deductions, student-loan interest, and the deductible part of self-employment tax reduce income before itemized deductions.
Study this topicTurn reading into retrieval
Test Part 1 with current IRS sample questions.
Use the free sample for immediate explanations, then continue with the PassFast question bank when you are ready for full coverage and performance reporting.