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AICPA REG Exam Syllabus Topics:
| Section | Weight | Objectives |
| Federal Taxation of Individuals | 15-25% | - Loss limitations and tax computation
- Pass-through entity income reporting
- Adjustments, deductions, and credits
- Filing status and exemptions
- Gross income inclusions and exclusions
|
| Federal Taxation of Property Transactions | 12-22% | - Cost recovery, depreciation, and amortization
- Capital vs ordinary asset classification
- Basis and holding periods of assets
- Recognition of gains and losses
- Like-kind exchanges and involuntary conversions
|
| Ethics, Professional Responsibilities, and Federal Tax Procedures | 10-20% | - Treasury Department Circular 230 rules
- IRS audit, appeals, and collection procedures
- Ethics and responsibilities in tax practice
- Licensing and disciplinary systems
- Tax preparer penalties and due diligence
|
| Federal Taxation of Entities | 28-38% | - C Corporations
- S Corporations
- Partnerships and LLCs
- Tax-exempt organizations
- Book-tax differences and distributions
|
| Business Law | 10-20% | - Contracts and UCC Article 2
- Debtor-creditor relationships and bankruptcy
- Business structure legal framework
- Secured transactions (UCC Article 9)
- Agency relationships
|
AICPA CPA Regulation Sample Questions:
1. Smith made a gift of property to Thompson. Smith's basis in the property was $1,200. The fair market
value at the time of the gift was $1,400. Thompson sold the property for $2,500. What was the amount of
Thompson's gain on the disposition?
A) $0
B) $1,100
C) $1,300
D) $2,500
2. In which of the following situations may taxpayers file as married filing jointly?
A) Taxpayers who were divorced during the year.
B) Taxpayers who were legally separated but lived together for the entire year.
C) Taxpayers who were married but lived under a legal separation agreement at the end of the year.
D) Taxpayers who were married but lived apart during the year.
3. Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable
income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own
and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores' 1994
Form 1040.
In 1994, Joan received $3,500 as beneficiary of the death benefit, which was provided by her brother's
employer. Joan's brother did not have a nonforfeitable right to receive the money while living.
A) $50,000
B) $3,000
C) $10,000
D) $900
E) $0
F) $75,000
G) $500
H) $25,000
I) $1,300
J) $1,500
K) $55,000
L) $1,000
M) $2,500
N) $2,000
O) $1,250
4. The uniform capitalization method must be used by:
I. Manufacturers of tangible personal property.
II. Retailers of personal property with $2 million dollars in average annual gross receipts for the 3
preceding years.
A) Neither I nor II.
B) Both I and II.
C) II only.
D) I only.
5. Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable
income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own
and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores' 1994
Form 1040.
The Moores had no capital loss carryovers from prior years. During 1994, the Moores had the following
stock transactions, which resulted in a net capital loss:

A) $50,000
B) $3,000
C) $10,000
D) $900
E) $0
F) $75,000
G) $500
H) $25,000
I) $1,300
J) $1,500
K) $55,000
L) $1,000
M) $2,500
N) $2,000
O) $1,250
Solutions:
Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: E | Question # 4 Answer: D | Question # 5 Answer: B |