Free Sample Questions for CFP® Exam – Tax Planning

Are you finding it difficult to manage time for the CFP® exam? According to the pattern of the CERTIFIED FINANCIAL PLANNER™ exam, candidates have to attempt 170 questions in two sessions of 3 hours. To attempt the maximum number of questions on exam day, aspirants need to achieve speed and accuracy. You can set a timer during practice to achieve time efficiency. CFP® Exam Prep by Achieve offers ten practice questions from the subject tax planning to improve your time management.

Q1. Unrelated business taxable income is which of the following?

A. Royalties

B. Annuities

C. Dividends and interest

D. Dividends from a stock purchased on margin

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Q2. Which of the following is a taxable income example?

A. Workers’ compensation

B. Social Security disability benefits

C. Interest earned on bank deposit

D. Child support

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Q3. Which of the following is not a preference item and adjustment for the Alternative Minimum Tax (AMT)?

A. Incentive stock option bargain element

B. Oil and gas percentage increases

C. Depreciation (ACRS and MACRS)

D. Private activity municipal bonds

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Q4. Personal expenses deductible from adjusted gross income are also called:

A. Itemized deductions

B. Above-the-line deductions

C. Business expenses

D. GDP

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Q5. What is the penalty for assisting and abetting the understatement of a tax liability?

A. $250

B. $500

C. $1,000

D. $2,000

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Q6. Which of the following benefits a high-income taxpayer more than a low-income taxpayer?

A. Deduction

B. Health savings account

C. Earned Income Tax Credit

D. Dependent Daycare Credit

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Q7. Which of the following does not qualify as a secondary source of tax information?

A. Newsletters

B. Internal Revenue Code

C. Books

D. Articles

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Q8. Without which of the following, a CFP is not allowed to represent a taxpayer in an IRS audit?

A. Legal representation

B. A clear criminal background

C. Proof of citizenship

D. Additional licensing

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Q9. What age group is exempt from paying Social Security taxes if they are employed by a parent in an unincorporated business?

A. 18

B. 20

C. 21

D. 25

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Q10. What form of occurrence causes property damage, destruction, or loss, resulting in a casualty loss?

A. Significant

B. Expensive

C. Progressive

D. Sudden

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Since the CFP® exam is a timed test, it is critical to keep track of every minute during the exam. Only practice will help you improve your time management skills. CFP® Exam Prep by Achieve provides tests and practice questions to streamline your preparation. Identifying and answering the questions quickly would save time and increase your CFP® exam score.