EA Part 2 Topics Heavily Tested

If you're wondering what to prioritize for EA Part 2, candidate feedback points to a clear pattern: basis, entity distributions, Section 351, Section 179, dividends received deduction, and filing deadlines deserve extra attention. You should still study the full blueprint, but these areas are worth mastering, not just reviewing.

Basis and Distributions Show Up Again and Again

One of the most consistent themes in EA Part 2 is entity basis. That includes partnership basis, corporate basis, and the tax consequences of property contributions and distributions.

Focus especially on:

• Partner and partnership basis calculations
• Corporate shareholder basis concepts
• Partnership vs. corporate property distributions
• When gain is recognized and when it is not

This is an area where the exam often tests your ability to distinguish similar rules across entity types. For example, partnership distributions do not follow the same framework as C corporation or S corporation distributions. If you only memorize definitions without practicing calculations, these questions can get tricky fast.

A good study test: can you work through basis changes step by step without guessing?

Know Section 351, Section 179, and DRD at a Working Level

Candidates also report seeing multiple questions on Section 351 nonrecognition, Section 179, and the dividends received deduction (DRD).

For Section 351, be ready to identify:

• When property transfers to a corporation qualify for nonrecognition
• The role of control requirements
• Situations involving boot or exceptions

For Section 179, the exam may test more than the basic deduction idea. Be prepared for:

• General limitation concepts
• Phaseout rules
• Business income limitations
• Recapture mechanics when property use changes

For DRD, make sure you understand the purpose of the deduction and how it applies in corporate taxation. Even if the exam does not require deep memorization of every edge case, you should be comfortable recognizing when DRD is relevant.

Filing Deadlines Matter More Than Form Memorization

Another useful takeaway: entity filing deadlines are worth knowing, while heavy memorization of specific forms may be less important than some candidates expect.

That does not mean forms never matter. It means the exam tends to reward understanding of rules and timing over rote recall. If you're choosing where to spend an extra study hour, learning filing deadlines and core entity treatment is usually a better investment than trying to memorize every form detail in isolation.

Some candidates also report seeing little or nothing on certain retirement plan topics in Part 2, but don't use one exam experience to rule topics out entirely. The IRS can vary question coverage, so the safest approach is still broad preparation guided by the exam content outline.

Practical Takeaway

For EA Part 2, put extra reps into basis calculations, distributions, Section 351, Section 179, DRD, and entity deadlines. Practice is what makes these topics stick. If you want targeted multiple-choice review on business taxation topics, Enrolled Angel at enrld.com offers EA-style practice questions and mock exams that fit around a work schedule.