Free CPA TCP (Tax Compliance & Planning) Formula Sheet (2026)

Every CPA TCP formula you need on the test, grouped by topic, rendered with full math notation. 16 formulas across 4 topics, calibrated to the 2026 syllabus. Free forever, no signup required.

16 Formulas
4 Topics
2026 Syllabus
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All CPA TCP Formulas

Tax Compliance and Planning for Individuals 6 items
Individual AMT formula (TCP emphasis)
TI + Preferences + Adjustments = AMTI
−- Exemption = AMT Base
×26%\times 26\% (≤\leq$220,700) or 28%28\% = TMT
AMT=max⁡(0,TMT−Regular Tax)\text{AMT} = \max(0, TMT - \text{Regular Tax})
At-risk basis (§465)
At-risk = cash + property basis + recourse debt.
Losses deductible only to extent of at-risk basis; excess suspended.
Non-recourse debt does NOT increase at-risk (except qualified non-recourse RE).
Passive activity loss (PAL) rules
Passive losses offset only passive income; suspended losses carry forward.
Full disposition releases all suspended losses.
Active rental: $25k (PO $100k–$150k AGI).
Material participation: 500+ hrs.
Net operating loss (NOL) carryforward (post-TCJA)
NOL carryforward: indefinite (no carryback for most taxpayers post-2017).
Deduction limited to 80% of taxable income in carryforward year.
Exceptions: farming NOLs may carry back 2 years; casualty/disaster losses may carryback.
Estimated tax penalty safe harbor (TCP)
Tax paid ≥\geq lesser of:
90% current year, OR
100% prior year (110% if prior AGI > $150k).
Corps: 100% prior or 100% current (no 110%).
Self-employment (SE) tax calculation
Net SE Earnings=Net SE Income×92.35%\text{Net SE Earnings} = \text{Net SE Income} \times 92.35\%
SE Tax=15.3%×NE\text{SE Tax} = 15.3\% \times \text{NE} up to SS base + 2.9%×2.9\% \times excess.
+0.9% Add'l Medicare on > $200k ($250k MFJ). Deduct 50% above-the-line.
Entity Tax Compliance 6 items
Partnership inside vs. outside basis
Outside: partner's basis in interest.
Inside: partnership's basis in its assets.
Contribution: outside = contributor's carryover basis; inside = same.
§754 election: allows inside step-up on transfer/death.
S-corporation accumulated adjustments account (AAA)
AAA: cumulative post-S-election income (net of losses).
Distributions ordering:
1. AAA → tax-free (basis reduction)
2. AEP → taxable dividend
3. Remaining basis → return of basis
4. Excess → capital gain
C-corporation earnings and profits (E&P)
E&P = economic dividend capacity. Start with TI:
+ Tax-exempt income
+ Depr. difference (E&P uses ADS)
−- Federal taxes, −- non-deductible expenses.
Distributions reduce E&P; excess → basis → capital gain.
Section 338(h)(10) election
Joint election: treat stock sale as asset sale.
Seller: asset-level G/L (§1245/§1250 recapture possible).
Buyer: stepped-up basis via §1060 residual method.
Target: consolidated-group sub or S-corp only (not standalone C-corps).
Built-in gains (BIG) tax for S-corp conversion
Applies to C→S conversion selling appreciated assets within 5-yr recognition period.
BIG Tax=21%×min⁡(Recognized BIG,TI)\text{BIG Tax} = 21\% \times \min(\text{Recognized BIG}, TI)
Net BIG = FMV at conversion −- basis at conversion.
CFC Subpart F income
CFC: U.S. shareholders own > 50% voting/value.
Subpart F income taxed currently (no distribution needed) to ≥\geq10% U.S. shareholders on passive/tax-haven income.
GILTI: 10.5% min tax on intangible low-taxed income.
Entity Tax Planning 2 items
Entity selection: tax comparison
Sole prop/partnership/S-corp: pass-through, SE tax applies.
C-corp: 21% flat, double tax on dividends.
S-corp: split salary (SE tax) vs. distribution (no SE).
QBI 20%: pass-throughs only, not C-corps.
Dividends-received deduction (DRD) — corporate
<20%< 20\% ownership: 50% DRD.
≥20%\geq 20\% but <80%< 80\%: 65% DRD.
≥80%\geq 80\% (affiliated): 100% DRD.
DRD limited to applicable percentage of taxable income before DRD, unless allowing full DRD would create/increase an NOL.
Property Transactions 2 items
Installment sale gross profit ratio
GP Ratio=GPContract Price\text{GP Ratio} = \frac{\text{GP}}{\text{Contract Price}}
Income=GP Ratio×Payments (ex. interest)\text{Income} = \text{GP Ratio} \times \text{Payments (ex. interest)}
Contract price = selling price −- qualifying debt assumed.
Like-kind exchange: boot and gain recognition
Boot Recd=Cash+FMV non-LK+Liab. assumed by buyer−Liab. assumed by taxpayer\text{Boot Recd} = \text{Cash} + \text{FMV non-LK} + \text{Liab. assumed by buyer} - \text{Liab. assumed by taxpayer}
Gain Recog=min⁡(Realized Gain,Boot Recd)\text{Gain Recog} = \min(\text{Realized Gain}, \text{Boot Recd})
Deferred gain reduces replacement basis.

Frequently Asked Questions

Is the CPA TCP formula sheet free?
Yes. The full CPA TCP formula sheet is free, with no signup, no email, and no credit card required. 16 formulas across 4 topics, all rendered with the same KaTeX math notation used in the FreeFellow study app.
Can I download the CPA TCP formula sheet as a printable PDF?
Yes. A 1080x1350 portrait PDF (Instagram and LinkedIn carousel native size, also great for tablet study) is linked at the top of this page. The PDF is fully self-contained: math is pre-rendered, fonts are embedded, no internet connection needed once downloaded.
What's covered on the CPA TCP formula sheet?
Every formula is grouped by official syllabus topic, with the formula in math notation plus a one-line note on when to use it (or a watch-out from CAIA, CFA, or other prep-provider commentary). Coverage is calibrated to the 2026 syllabus and refreshed when the corpus changes.
Is this formula sheet affiliated with CPA?
No. FreeFellow is not affiliated with the CPA or any examination body. This is an independent study aid covering the published syllabus.
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