EA Part 1 Income and Assets Practice Questions
Domain 2 of SEE Part 1: Individuals · 17 of 85 scored questions
Ten EA Part 1 questions on income and assets, untimed, with every option explained.
Or take the full EA Part 1 mock examA married couple filing jointly sold their main home for a $560,000 gain. Both owned and used it as their main home for the last four years, and neither excluded gain on another home in the past two years. How much gain is taxable?
Income and Assets on EA Part 1
Income and Assets is one of the two largest Part 1 domains. Expect what is taxable, how retirement money is taxed, how basis is figured for bought, gifted and inherited property, and how sales of stock and homes are reported.
- Outline
- Wages, interest, dividends, retirement distributions, Social Security, canceled debt, property basis and sales, and adjustments to income
- Share of the exam
- 17 of 85 scored questions (20%)
- Our drill
- 10 questions from 28 on this domain, untimed, every option explained; one free attempt, unlimited with a pass
What to know for tax year 2025
- Inherited property generally takes a basis equal to fair market value at death and is always long-term; gifted property keeps the donor's basis, with a lower loss basis when value fell below it.
- Married couples filing jointly exclude up to $500,000 of gain on a main home ($250,000 single) after two years of ownership and use in the last five.
- Up to 85% of Social Security benefits are taxable; the first tier starts when provisional income exceeds $25,000 single or $32,000 joint.
- The 2025 IRA limit is $7,000 plus $1,000 at age 50 or older; RMDs begin at 73 for owners born 1951-1959, with a 25% excise tax (10% if corrected in time) on a missed RMD.
- Canceled debt is income unless an exclusion applies, such as insolvency to the extent liabilities exceed assets (Form 982).
- Since 2018, like-kind exchanges apply only to real property; replacement property must be identified in 45 days and received in 180.
Test yourself on income and assets
Ten EA Part 1 questions on income and assets, untimed, with every option explained.
Or take the full EA Part 1 mock examCommon questions
How many income and assets questions are on SEE Part 1?
17 of the 85 scored questions, according to the PSI content outline. Our full mock draws exactly 17, plus unscored experimental questions mixed in as on the real exam.
Are these real SEE questions?
No. The IRS and PSI do not release exam questions, and candidates sign a non-disclosure agreement. These are original practice questions written to the PSI content outline for tax year 2025, with an explanation for every option.
More EA Part 1 domains
Outline and exam facts checked November 2026: PSI: SEE Candidate Information Bulletin (revised October 9, 2026) · IRS: Enrolled agents frequently asked questions · IRS: Become an enrolled agent.
Original independent practice questions written to the PSI content outline for tax year 2025. Independent practice, not affiliated with or endorsed by the IRS or PSI Services.