CPA REG study guide
CPA REG · Work through your exam, one topic at a time.
The CPA Regulation (REG) section is one of the four core sections of the Uniform CPA Examination, the licensing exam that candidates must pass to become a licensed Certified Public Accountant in the United States. REG focuses on the rules that govern how tax and legal professionals actually work: federal tax procedures and ethical responsibilities, business law, federal taxation of property transactions, federal taxation of individuals, and federal taxation of entities. It suits candidates who are pursuing CPA licensure, typically accounting graduates and professionals working in public accounting, corporate finance, or tax. The section rewards precise, rule-based knowledge rather than broad conceptual reasoning, so preparation should combine systematic review of authoritative rules with heavy practice on multiple-choice questions and task-based simulations. The CPA REG study guide has 5 sections and about 1,430 words.
01Ethics, Professional Responsibilities and Federal Tax Procedures
Circular 230 governs practice before the IRS. Know the difference between the general standards (competence, due diligence, proper reliance on others) and the specific prohibitions (no contingent fees except for certain audit/collections and rulings requests, no giving false opinions, no negotiating refund checks).
345 words, about 2 min02Business Law
Business law questions test agency, contracts, and business entity formation. For agency, know actual authority (express or implied), apparent authority (third-party reasonable belief based on principal's manifestations), and ratification.
292 words, about 1 min03Federal Taxation of Property Transactions
Property transactions test basis, gain/loss recognition, and character. Start with basis: cost basis, adjusted basis (cost plus capital improvements minus depreciation), and substituted basis in gifts and inheritances.
273 words, about 1 min04Federal Taxation of Individuals
Individual taxation tests gross income, above-the-line deductions, standard vs. itemized deductions, and credits.
254 words, about 1 min05Federal Taxation of Entities
Entity taxation covers partnerships, S corporations, and C corporations. Partnerships are pass-through: income, deductions, and credits flow to partners, and distributions generally do not trigger gain unless cash exceeds outside basis.
266 words, about 1 min