What's Actually on EA Part 2 in 2026? Real Exam Feedback from Recent Test-Takers

Part 2 of the Special Enrollment Examination — Businesses — has a reputation. It covers entity taxation, depreciation, corporate transactions, and the kind of basis calculations that make candidates question their life choices. But what actually shows up on exam day in 2026?

We analyzed recent feedback from candidates who passed Part 2 in the February 2026 testing window to identify what the exam is really testing right now. If you're studying for Part 2 this season, this breakdown should help you prioritize your prep time.

The 6 Most Heavily Tested Topics

Candidates consistently report that these six areas carried the most weight on their exams, with multiple questions dedicated to each:

1. Partnership and Corporate Basis Calculations

This is the single most important skill on Part 2. You need to calculate basis cold — initial basis on formation, adjustments for income and losses, distributions, and disposal.

For partnerships, track each partner's outside basis: contributions increase it, distributions decrease it, and the partner's share of liabilities affects it. For S corps, the rules are similar but with critical differences — S corp shareholders don't get basis increases from entity-level debt (only direct loans to the corporation count).

2. Partnership vs. Corporate Property Distributions

The exam tests whether you understand the fundamental difference between how partnerships and corporations handle property distributions:

• Partnerships generally don't recognize gain on property distributions (the partner takes a carryover basis). Gain is only triggered when money distributed exceeds the partner's outside basis.
• C Corporations recognize gain as if the property were sold at FMV when distributing appreciated property. The shareholder's basis in the received property is FMV.
• S Corporations follow similar rules to C corps for appreciated property, but the gain flows through to shareholders.

3. §351 Nonrecognition (Transfers to Controlled Corporations)

Section 351 is a cornerstone of corporate tax — when property is transferred to a corporation in exchange for stock, no gain or loss is recognized if the transferors control the corporation (80%+ of vote and value) immediately after the exchange.

The exam tests the exceptions: boot received (cash or other property), assumption of liabilities, and how basis carries over. Know the formula:

4. Section 179 Expensing

Section 179 remains a perennial favorite. Under current law (post-OBBBA), the deduction limit is $2.5 million with a phase-out threshold of $4 million. Know:

• What qualifies: Tangible personal property used in a trade or business, off-the-shelf software, certain improvements to nonresidential real property.
• Phase-out: The deduction is reduced dollar-for-dollar once property placed in service exceeds the threshold.
• Income limitation: Section 179 cannot create or increase a net operating loss.
• Recapture: If property is converted to non-business use, previously expensed amounts are recaptured as ordinary income.

5. Dividends Received Deduction (DRD)

The DRD allows C corporations to deduct a portion of dividends received from other domestic corporations, reducing the impact of triple taxation on inter-corporate dividends:

There's a taxable income limitation for the 50% and 65% tiers — the deduction generally cannot exceed 50% (or 65%) of taxable income, computed without the DRD, NOL deduction, or capital loss carryback. Exception: if the DRD creates or increases a net operating loss, the limitation doesn't apply.

6. Entity Filing Deadlines

Know when each entity type must file and the extension periods:

What's NOT Heavily Tested

Equally valuable is knowing where not to over-invest your study time. Recent candidates report:

• Very little form memorization. You don't need to memorize which line number reports which item. Understand what each form is for and who files it, but don't waste hours on line-by-line details.
• Retirement plans (SEP, SIMPLE) were nearly absent. While these are in the IRS exam blueprint, multiple candidates in February 2026 reported zero questions on employer retirement plan specifics. Don't skip them entirely, but don't make them a priority over basis calculations.

This aligns with the broader exam philosophy: the SEE tests your ability to apply tax law, not recite form instructions.

Study Strategies That Worked

Based on candidate reports from the February 2026 testing window:

The MCQ-First Approach

The most common strategy among candidates who passed: skip lengthy textbook reading and jump straight into practice questions. One candidate who passed with only 20 hours of total study time described their method as "MCQs + practice exams, then reviewing missed questions." Multiple candidates used question banks as their primary study tool.

Targeted Review Over Brute Force

Rather than re-reading entire chapters, successful candidates focused on the topics they got wrong. Several mentioned using AI tools to get quick explanations of concepts they missed during practice.

Mock Exam Scores in the Low-to-Mid 70s Are Sufficient

Candidates consistently report passing the actual exam after scoring 70–76% on practice exams. If you're hitting that range, you're likely ready. Perfectionism costs time that could be spent on weak areas.

It Can Be Done Fast — With the Right Foundation

One candidate passed all three parts in 17 days while working full time. Another passed Part 2 with 20 total study hours. Both had relevant professional backgrounds. If you're new to tax, budget more time, but know that the exam rewards practical understanding over memorized details.

Quick-Reference Cheat Sheet

Bookmark this table for your study sessions:

Start Practicing These Topics Now

Knowing what's heavily tested is only half the equation — you need to practice applying it under exam conditions.

Enrolled Angel has over 3,200 practice questions covering all three parts of the EA exam, including detailed Part 2 questions on every topic listed above. Our unit-based Course mode walks you through each exam domain in order, so you can systematically build confidence on basis calculations, entity comparisons, and everything else Part 2 throws at you.

For a comprehensive overview of all Part 2 content, check out our EA Exam Part 2 Study Guide. And if you're preparing for the testing center transition, read about the Prometric to PSI switch happening in 2026.