What does the TCP CPA section test?

Tax Compliance and Planning covers Tax Compliance and Planning for Individuals and Personal Financial Planning; Entity Tax Compliance; Entity Tax Planning; Property Transactions (disposition of assets). Establish the baseline tax result before recommending a plan. Compare alternatives across taxpayer, period, timing, character, basis, cash tax, and future effects while making the assumptions explicit.

How long is TCP, and how many questions are on the exam?

TCP has 4 hours of testing time, 68 MCQs, and 7 task-based simulations. The two MCQ testlets contain 34 and 34 questions. The three simulation testlets contain 2, 3, 2 TBSs.

How is TCP weighted between MCQs and simulations?

MCQs contribute 50% of the section score and TBSs contribute 50%. The content-area ranges describe a different dimension: how the tested content is allocated across the blueprint. Neither set of percentages is a personalized study-time plan.

Is TCP required for every CPA candidate?

TCP is a Discipline option. Candidates select one of BAR, ISC, or TCP in addition to the required AUD, FAR, and REG Core sections.

Do I need an account for these TCP questions?

No. All 5 questions, answer checking, explanations, progress, and reset controls on this page work without an account. Create a MiloPrep account to continue learning with lessons, videos, flashcards, and more practice.

Are these official AICPA exam questions?

These are independently authored questions from the MiloPrep question bank. The AICPA blueprint defines the exam scope and format; it is not the source of these practice items.

Does this practice set cover the full TCP blueprint?

This 5-question set is a starting point for practice and explanation review. It does not cover every blueprint task or predict an exam score. Use the linked TCP study guide and official 2026 blueprint to plan complete coverage.

Discipline · Tax Compliance and Planning

Free TCP CPA practice questions

Learn TCP with lessons, videos, flashcards, and practice on MiloPrep. Review the exam format and blueprint below, then try 5 free questions with explanations.

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2026 TCP exam format

TCP is a Discipline option. Complete the AUD, FAR, and REG Core sections and select one Discipline from BAR, ISC, and TCP. The 4-hour exam combines multiple-choice questions with task-based simulations, which ask you to work through a case using the supplied information.

Section type

Discipline

Choose one of three Disciplines

Testing time

4 hours

Five testlets

Multiple-choice questions

68 MCQs

50% of the section score

Task-based simulations

7 TBSs

50% of the section score

How the five testlets are arranged

Testlet 1
34 MCQs
Testlet 2
34 MCQs
Testlet 3
2 TBSs
Testlet 4
3 TBSs
Testlet 5
2 TBSs

MCQs account for 50% of your section score; simulations account for 50%. These are score weights, so preparing for both formats matters. They do not prescribe how you should divide your study hours.

Verify the format with AICPA

What does TCP test?

TCP tests individual and entity tax compliance, tax planning, and property transactions. It builds on tax classification and calculation by asking you to evaluate alternatives and their consequences.

Establish the baseline tax result before recommending a plan. Compare alternatives across taxpayer, period, timing, character, basis, cash tax, and future effects while making the assumptions explicit.

How to study these skills

Calculate compliance before planning. Write the baseline, then compare alternatives using the same periods and assumptions. Explain why a timing change, election, or transaction structure changes the result and what could make the recommendation unsuitable.

Read the TCP section guide

TCP content areas and exam percentages

The AICPA blueprint effective January 1, 2026 defines these content areas and allocation ranges. Use every area in your study plan, then spend additional time where practice shows a gap.

TCP blueprint content areas, study guidance, and allocation ranges
Content area and what to learn	Exam weight
Area I Tax Compliance and Planning for Individuals and Personal Financial Planning	30-40%
Connect individual tax compliance with planning and personal financial decisions. Evaluate the current result alongside possible future consequences. Practice focus: Compare income-recognition alternatives across two periods using the rates and assumptions supplied.
Area II Entity Tax Compliance	30-40%
Apply entity tax rules to transactions and required compliance outputs. Keep entity-level and owner-level consequences distinct. Practice focus: Calculate the baseline entity tax result before considering a planning alternative.
Area III Entity Tax Planning	10-20%
Evaluate entity planning choices using timing, character, basis, constraints, and future effects. Practice focus: Compare two alternatives under consistent assumptions and identify the factor that changes the recommendation.
Area IV Property Transactions (disposition of assets)	10-20%
Analyze dispositions of assets with attention to basis, recognition, character, and the resulting tax consequences. Practice focus: Trace a disposition from adjusted basis to the tax result before comparing alternative transaction terms.

The ranges describe content allocation, not a guaranteed question count for each topic. The blueprint also lists representative tasks, skill levels, and references; its task list is not exhaustive.

Open the official 2026 AICPA blueprint (PDF) TCP study guide

TCP practice questions

Try 5 questions without an account. Choose an answer, check it, then review the explanation before moving on.

Untimed0 / 5

Shareholder-S Corp Transactions
Question 1. A shareholder owning more than 2% of an S corporation's stock receives employer-paid health insurance. How is the health insurance premium treated for federal income tax purposes?
Answer to question 1A. Included in the shareholder's W-2 wages and deductible by the shareholder on Form 1040B. Excluded from income as a tax-free fringe benefitC. Deductible only by the S corporation as a business expense with no income to the shareholderD. Treated as a nontaxable distribution reducing the shareholder's stock basis
Explanation after you answer
Consolidated Tax Returns
Question 2. A consolidated return election, once made by an affiliated group, remains in effect for subsequent tax years unless which of the following occurs?
Answer to question 2A. The common parent voluntarily revokes the election each yearB. The IRS grants permission to discontinue filing on a consolidated basisC. A new subsidiary is added to the group during the yearD. The group's combined taxable income falls below a threshold amount
Explanation after you answer
Types of Trusts
Question 3. Which of the following statements correctly describes the treatment of capital gains in a simple trust?
Answer to question 3A. Capital gains are never subject to taxation in a simple trust.B. Capital gains are always distributed to the beneficiaries as part of required income distributions.C. Capital gains are generally allocated to corpus and taxed to the trust rather than distributed to beneficiaries.D. Capital gains must be distributed equally among all beneficiaries each year.
Explanation after you answer
Individual Tax Compliance and Planning
Question 4. Which of the following best describes the tax treatment when an employee exercises incentive stock options (ISOs) and holds the shares for the required holding period before selling?
Answer to question 4A. The entire gain is taxed as long-term capital gain at the time of saleB. The bargain element is taxed as ordinary income at exerciseC. The entire gain is taxed as ordinary income at the time of saleD. Half the gain is ordinary income and half is capital gain
Explanation after you answer
Shareholder-Corporation Transactions
Question 5. In a Section 351 exchange, when a shareholder transfers property with a liability in excess of the property's adjusted basis, how is the excess treated?
Answer to question 5A. The excess is treated as a nontaxable return of capital.B. The excess is recognized as gain by the transferor shareholder.C. The excess reduces the shareholder's basis in other assets transferred.D. The excess is treated as a dividend to the shareholder.
Explanation after you answer

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Questions from the MiloPrep question bank. Independently authored practice, not official exam items. This short set is for learning and does not predict an exam score.

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For each missed answer, note the rule you needed and the fact you overlooked. Review the related topic, then try a fresh scenario. Repeating a familiar set helps review the explanation, but broader practice is needed to check your understanding.

TCP section guide

Connect the format and content areas to a study sequence, worked example, and review plan.

Explore the TCP guide

Official AICPA blueprint

Check the 2026 content groups, representative tasks, skills, and references for Tax Compliance and Planning.

Open the blueprint PDF

More CPA practice

Choose another Core or Discipline section and work through its free questions and explanations.

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TCP practice: questions and answers

What does the TCP CPA section test?: Tax Compliance and Planning covers Tax Compliance and Planning for Individuals and Personal Financial Planning; Entity Tax Compliance; Entity Tax Planning; Property Transactions (disposition of assets). Establish the baseline tax result before recommending a plan. Compare alternatives across taxpayer, period, timing, character, basis, cash tax, and future effects while making the assumptions explicit.
How long is TCP, and how many questions are on the exam?: TCP has 4 hours of testing time, 68 MCQs, and 7 task-based simulations. The two MCQ testlets contain 34 and 34 questions. The three simulation testlets contain 2, 3, 2 TBSs.
How is TCP weighted between MCQs and simulations?: MCQs contribute 50% of the section score and TBSs contribute 50%. The content-area ranges describe a different dimension: how the tested content is allocated across the blueprint. Neither set of percentages is a personalized study-time plan.
Is TCP required for every CPA candidate?: TCP is a Discipline option. Candidates select one of BAR, ISC, or TCP in addition to the required AUD, FAR, and REG Core sections.
Do I need an account for these TCP questions?: No. All 5 questions, answer checking, explanations, progress, and reset controls on this page work without an account. Create a MiloPrep account to continue learning with lessons, videos, flashcards, and more practice.
Are these official AICPA exam questions?: These are independently authored questions from the MiloPrep question bank. The AICPA blueprint defines the exam scope and format; it is not the source of these practice items.
Does this practice set cover the full TCP blueprint?: This 5-question set is a starting point for practice and explanation review. It does not cover every blueprint task or predict an exam score. Use the linked TCP study guide and official 2026 blueprint to plan complete coverage.

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