CTC Cheat Sheet 2026

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

1. A Roth IRA is subject to income phase-out limits for contributions. For 2024, the phase-out begins for single filers at a MAGI of: → $146,000
2. What rate does the Net Investment Income Tax (NIIT) impose on passive rental income for high-income taxpayers? → 3.8%
3. What is the primary risk of the 'pro-rata rule' when executing a backdoor Roth IRA conversion? → Pre-tax IRA balances make the conversion partially taxable
4. Which skill is most important for successful advisory interactions? → Clear and effective communication
5. What continuing education requirement supports risk assessment competence? → Ongoing education in regulatory changes, market developments, and best practices
6. What is the main purpose of a professional code of ethics? → To guide ethical behavior
7. What is the consequence of willfully failing to file a tax return? → Possible criminal charges
8. When planning the sale of a closely held business, which approach allows the selling shareholder to spread taxable gain over multiple years? → Installment sale method under Section 453
9. How should conflicts of interest be managed in portfolio management? → Identify, disclose, and mitigate all actual and potential conflicts of interest
10. What is the deadline for filing individual federal tax returns in the U.S.? → April 15
11. What regulatory compliance requirement applies to risk assessment? → Full compliance with all applicable federal, state, and industry regulations
12. How should conflicts of interest be managed in regulatory compliance? → Identify, disclose, and mitigate all actual and potential conflicts of interest
13. How should conflicts of interest be managed in estate planning? → Identify, disclose, and mitigate all actual and potential conflicts of interest
14. How should conflicts of interest be managed in risk assessment? → Identify, disclose, and mitigate all actual and potential conflicts of interest
15. A Non-Qualified Deferred Compensation (NQDC) plan must comply with IRC Section 409A, which primarily governs: → Election timing, distribution triggers, and prohibition on acceleration
16. For a self-employed individual, the maximum annual deductible contribution to a SEP-IRA in 2024 is the lesser of 25% of net self-employment income or: → $69,000
17. Which tax strategy involves reclassifying a building's components into shorter depreciation lives to accelerate deductions? → Cost segregation study
18. What continuing education requirement supports portfolio management competence? → Ongoing education in regulatory changes, market developments, and best practices
19. A Defined Benefit (DB) pension plan is most advantageous for a high-income business owner who is: → Older with fewer years to fund the plan
20. Which type of business expense is disallowed as a deduction for both C corporations and pass-through entities under IRC Section 280E? → Expenses of a business trafficking in controlled substances
21. What is the best way to explain complex tax concepts to a client? → Use plain, simple language
22. Which of the following is an effective advisory strategy? → Proactive, personalized advice
23. Which retirement plan type requires no employer contribution in years when cash flow is tight, offering maximum flexibility? → SEP-IRA
24. Under a Cash Balance pension plan, each participant's benefit is expressed as: → A hypothetical account balance with annual pay and interest credits
25. How can charitable contributions affect a taxpayer’s return? → They reduce taxable income
26. What regulatory compliance requirement applies to investment analysis? → Full compliance with all applicable federal, state, and industry regulations
27. What fiduciary duty applies to regulatory compliance? → Act in the client's best interest with loyalty, care, and full disclosure
28. The Required Minimum Distribution (RMD) starting age for individuals who turn 73 in 2023 or later is: → 73
29. Which deduction allows self-employed individuals and pass-through entity owners to deduct up to 20% of qualified business income? → Qualified Business Income (QBI) deduction
30. What fiduciary duty applies to tax strategies? → Act in the client's best interest with loyalty, care, and full disclosure