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TCP Gleim Supplemental Course: Tax Compliance and Planning

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  1. WELCOME. PLEASE START HERE!

    1. Welcome to Farhat Lectures
  2. 2. How to Use This Course & Resources
  3. 3. Choosing the Right CPA Discipline
  4. 4. CPA Exam Study Tips & Common Questions
  5. 🚀Introduce Yourself
    1 Topic
  6. 🚨🚨🚨2026 AICPA Released Questions
    1 Topic
  7. 💡SU 1.1: Compliance and Planning: Individuals: Impact on Individual Taxable Income Given Certain Scenarios
    10 Topics
    |
    2 Quizzes
  8. 💡SU 1.2: Compliance and Planning : Impact of Standard Deductions and Itemized Deductions
    4 Topics
    |
    1 Quiz
  9. 🚨🚨HOW TO SOLVE SIMULATIONS (TUTORIAL + VIDEO EXAMPLES)
    ✅ TCP CPA Exam Simulation Tutorial + 2024 and 2025 AICPA Video Questions. Gleim
    6 Topics
    |
    2 Quizzes
  10. 💡SU 1.3: Compliance and Planning: Alternative Minimum Tax, Kiddie Tax, and Property Donations
    14 Topics
    |
    3 Quizzes
  11. 💡SU 1.4: Compliance and Planning: Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)
    4 Topics
    |
    3 Quizzes
  12. 💡SU 1.5: Compliance and Planning: Filing Requirements and Payments
    6 Topics
    |
    1 Quiz
  13. 💡SU 2.1: 2.1 Passive Activity and At-Risk Limitations
    7 Topics
    |
    4 Quizzes
  14. 🎯AICPA Released Questions
    1 Quiz
  15. 💡SU 2: Compliance and planning – special issues 2.2: Gift Taxation Compliance & 2.3: Gift Taxation Planning
    10 Topics
    |
    4 Quizzes
  16. 🎯Comprehensive Test Gift Tax Including AICPA Released Questions
    1 Quiz
  17. 💡SU 3: Personal Financial Planning I 3.1: Qualified Retirement Plans
    13 Topics
    |
    5 Quizzes
  18. 💡SU 3: Personal Financial Planning I 3.2: Return on Retirement Plan Investments
    2 Topics
    |
    1 Quiz
  19. 💡SU 3: Personal Financial Planning I 3.3: Planning considerations for equity securities, Corporate Bonds and Municipal Bonds
    4 Topics
    |
    2 Quizzes
  20. 💡SU 3: Personal Financial Planning I 3.4: Funding Post-Secondary Education
    10 Topics
    |
    4 Quizzes
  21. 💡SU 3: Personal Financial Planning I 3.5: Insurance and Risk Mitigation as Planning tool
    8 Topics
    |
    4 Quizzes
  22. 💡SU 3: Personal Financial Planning I 3.6: Consideration of legal ownership of assets and beneficiary designations for planning
    2 Topics
    |
    1 Quiz
  23. 💡SU 4: Business and Nonbusiness Structures 4.1 till 4.4
    13 Topics
    |
    6 Quizzes
  24. 💡SU 4: Business and Nonbusiness Structures 4.5: Trusts
    8 Topics
    |
    1 Quiz
  25. 🎯Comprehensive Test Including AICPA Released Questions
    1 Quiz
  26. 💡SU 4: Business and Nonbusiness Structures 4.6: Tax-exempt Organizations
    3 Topics
    |
    1 Quiz
  27. 🎯Comprehensive Test: Tax-exempt Organizations
    1 Quiz
  28. 💡SU 5: C Corporations I 5.1: Net Operating and Capital Loss Utilization
    11 Topics
    |
    5 Quizzes
  29. 💡SU 5: C Corporations I 5.2: Corporate Formation
    12 Topics
    |
    1 Quiz
  30. 💡SU 5: C Corporations I 5.3: Distributions
    24 Topics
    |
    7 Quizzes
  31. 💡SU 5: C Corporations I 5.4: Loans between Shareholder and C Corporation
    2 Topics
    |
    1 Quiz
  32. 💡SU 5: C Corporations I 5.5: Consolidated Tax Return
    5 Topics
  33. 💡SU 5: C Corporations I 5.6: International Tax Issues
    50 Topics
    |
    11 Quizzes
  34. 💡SU 6: Planning C Corporations
    6 Topics
    |
    2 Quizzes
  35. 💡SU 6: Planning C Corporations I 6.1: Business Expansion: Optimize state and local income tax rules
    2 Topics
    |
    1 Quiz
  36. 💡SU 6: Planning C Corporations I 6.2: Changing Tax Rates and Legislation
    2 Topics
    |
    1 Quiz
  37. 💡SU 6: Planning C Corporations I 6.3: Estimated Tax Payments
    4 Topics
    |
    1 Quiz
  38. 🎯Comprehensive Test: C Corporations
    3 Quizzes
  39. 💡SU 7: Compliance and Planning – S Corporations
    19 Topics
    |
    12 Quizzes
  40. 🎯Comprehensive Test: S Corporations
    3 Quizzes
  41. 💡SU 8: Compliance and Planning – Partnerships
    16 Topics
    |
    11 Quizzes
  42. 🎯Comprehensive Tests: Partnerships Including AICPA Released Questions
    4 Quizzes
  43. 💡SU 9: Disposition of Assets I 9.1: Non-taxable disposition of Assets
    12 Topics
    |
    9 Quizzes
  44. 💡SU 9: Disposition of Assets I 9.2: Amount and Character of Gains and Losses on Asset Disposition and Netting Process
    10 Topics
    |
    10 Quizzes
  45. 🎯AICPA Released Questions: Property Transactions
    2 Quizzes
  46. 💡SU 9: Disposition of Assets I 9.3: Installment Sales
    2 Topics
    |
    2 Quizzes
  47. 💡SU 9: Disposition of Assets I 9.4: Related Party Transactions
    3 Topics
    |
    2 Quizzes
  48. 💡SU 9: Disposition of Assets I 9.5: Section 1244 Stock and Other topics
    3 Topics
    |
    2 Quizzes
  49. 🎯AICPA Released Questions: Section 1244
    1 Quiz
Quiz 1 of 140

🎯Employee Stock Options: 2 MCQs

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Responses

  1. Nonqualified stock options were granted to employees on April 30, 20X3, with the options having a readily ascertainable value. As a result, employees recognized ordinary income based on this value for the taxable year 20X3. If the nonqualified stock options granted to employees are exercised, which of the following statements is true regarding the holding period for the shares acquired?

    Why Holding period is Not Start From date Of Granting Option .

    1. Hello Devang,

      The reason the holding period does not start on the grant date is that, at grant, the employee only has an option/right to buy the stock, not the stock itself. The actual shares are acquired only when the option is exercised, and the tax rules say the holding period for stock acquired by exercising a right begins on the exercise date. According to IRC §1223(5), the holding period for stock issued upon the exercise of rights begins with and includes the day the rights are exercised.

      Thus, even though this nonqualified option had a readily ascertainable value and ordinary income was recognized at the grant date, that affects when compensation income is recognized, not when the holding period for the stock begins. The holding period question is about the shares acquired, and those shares do not exist in the employee’s hands until exercise.

      Hope this helps!