AFTR Cheat Sheet 2026

The 30 highest-yield AFTR facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the standard deadline for filing federal income taxes in the United States? → April 15
2. What fiduciary duty applies to portfolio management? → Act in the client's best interest with loyalty, care, and full disclosure
3. A taxpayer converts a traditional IRA to a Roth IRA. How is the converted amount treated for federal income tax purposes? → It is taxable as ordinary income in the year of conversion
4. Startup costs that exceed the $5,000 first-year deduction limit must be: → Amortized over 180 months (15 years) beginning with the month the business starts
5. Which of the following is NOT a qualifying exception to the 10% early distribution penalty from an IRA? → Purchase of a vacation home
6. What fiduciary duty applies to financial planning? → Act in the client's best interest with loyalty, care, and full disclosure
7. What fiduciary duty applies to risk assessment? → Act in the client's best interest with loyalty, care, and full disclosure
8. A retiree receiving pension income with no withholding should: → Submit Form W-4P to request voluntary withholding from the pension
9. What is the purpose of a W-2 form? → To document wages and tax withholdings from an employer
10. How should conflicts of interest be managed in portfolio management? → Identify, disclose, and mitigate all actual and potential conflicts of interest
11. Which tax credit is specifically designed to assist parents with the cost of raising children? → Child Tax Credit
12. What continuing education requirement supports regulatory compliance competence? → Ongoing education in regulatory changes, market developments, and best practices
13. What continuing education requirement supports tax strategies competence? → Ongoing education in regulatory changes, market developments, and best practices
14. What continuing education requirement supports financial planning competence? → Ongoing education in regulatory changes, market developments, and best practices
15. What is the 2024 contribution limit for a traditional IRA for taxpayers under age 50? → $7,000
16. Which of the following retirement account types allows qualified withdrawals to be completely tax-free? → Roth IRA
17. How should financial planning performance be reported to clients? → Provide accurate, complete, and timely performance reporting with appropriate benchmarks
18. What fiduciary duty applies to client relations? → Act in the client's best interest with loyalty, care, and full disclosure
19. Bonus depreciation under current law generally allows businesses to deduct what percentage of the cost of qualifying new or used property in the first year? → 100%
20. What fiduciary duty applies to investment analysis? → Act in the client's best interest with loyalty, care, and full disclosure
21. How should estate planning performance be reported to clients? → Provide accurate, complete, and timely performance reporting with appropriate benchmarks
22. Which of the following is an example of an adjustment to income? → Student loan interest deduction
23. A corporation that accumulates earnings beyond the reasonable needs of the business may be subject to: → The Accumulated Earnings Tax (AET) of 20%
24. What is the maximum contribution to an IRA that can be deducted in 2023 for individuals under age 50? → $6,500
25. How should portfolio management performance be reported to clients? → Provide accurate, complete, and timely performance reporting with appropriate benchmarks
26. How should conflicts of interest be managed in investment analysis? → Identify, disclose, and mitigate all actual and potential conflicts of interest
27. Which form must a taxpayer file to report nondeductible IRA contributions and track the IRA basis? → Form 8606
28. What is the maximum annual employer contribution to a SEP-IRA for an employee in 2024, expressed as a percentage of compensation? → 25%
29. When a business sells depreciable property used in a trade or business at a gain, the gain is reported on: → Form 4797, Sales of Business Property
30. Employers who pay wages must deposit employment taxes by using: → EFTPS (Electronic Federal Tax Payment System)