CTC Study Guide 2026
Everything you need to pass the CTC exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CTC Exam Format at a Glance
📚 CTC Topics to Study (21)
✍️ Sample CTC Questions & Answers
1. What tax planning strategy involves a property owner selling a property below its appraised value to a family member and claiming a gift for the difference?
A bargain sale involves selling property for less than fair market value, with the difference treated as a gift; the seller recognizes gain on the sale portion and may owe gift tax on the gifted portion, requiring careful basis allocation.
2. What is the annual depreciation period for commercial (nonresidential) real property under MACRS?
Nonresidential commercial real property placed in service after May 12, 1993 is depreciated straight-line over 39 years under MACRS.
3. What fiduciary duty applies to risk assessment?
Fiduciary duty requires acting in the client's best interest with loyalty, care, and full disclosure of all material facts.
4. What is the best way to explain complex tax concepts to a client?
When explaining complex tax concepts, it is essential for professionals to use plain, simple language and avoid technical jargon. This approach ensures that clients fully understand the advice, its implications, and the reasoning behind it. Clear communication empowers clients to make informed decisions and builds their confidence in the advisor's expertise.
5. What regulatory compliance requirement applies to financial planning?
Full regulatory compliance is mandatory regardless of practice size, ensuring market integrity and client protection.
6. Which type of business expense is disallowed as a deduction for both C corporations and pass-through entities under IRC Section 280E?
IRC Section 280E disallows deductions for any amount paid in carrying on a trade or business that consists of trafficking in controlled substances scheduled under federal law, including cannabis businesses.