ACAT ATP case studies
ACAT ATP · Put your knowledge to work in context.
The Accredited Tax Preparer (ATP) is a credential offered by the Accreditation Council for Accountancy and Taxation (ACAT), a credentialing organization focused on accounting and taxation professionals. The ATP indicates that the holder specializes in preparing individual tax returns and understands tax laws, forms, and filing requirements, positioning it for practitioners who want to distinguish themselves in a competitive marketplace. The ACAT ATP case studies are 5 cases and about 4,158 words.
1The Rental Property Repairs vs. Improvements Dilemma
In March 2025, client Maria, a cash-basis taxpayer, spent 18,000 on her rental property: 12,000 to replace the entire roof (the old roof was 25 years old and leaking), 3,000 to repaint the interior after a tenant moved out, and 3,000 to install a new security system. She also paid 1,500 in April 2025 for plumbing repairs to fix a leak.
1,058 words, about 5 min2The Ethical Dilemma of the Client's Cryptocurrency Gains
You are a CPA preparing the 2025 tax return for client John, who is a high-net-worth individual. During the engagement, John mentions that he sold cryptocurrency in 2025 for a significant gain but does not want to report it because he believes the government cannot track it.
617 words, about 3 min3The S Corporation Shareholder's Health Insurance Premiums
Mike is a 2% shareholder-employee of an S corporation, ABC Inc. He works full-time and is paid a reasonable salary of 80,000.
946 words, about 5 min4The Hobby Loss or Business? The Case of the Amateur Artist
Emma is a full-time high school teacher with a salary of 60,000. She also creates and sells pottery at local craft fairs.
896 words, about 4 min5The CPA's Duty When Discovering a Prior Year Error
You are a CPA preparing the 2025 tax return for client Lisa, a sole proprietor. While reviewing her 2024 return, which you did not prepare, you discover that she failed to report 50,000 of business income.
641 words, about 3 min