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AICPA REG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Federal Taxation of Property Transactions | 12-22% | - Like-kind exchanges and involuntary conversions - Basis and holding periods of assets - Capital vs ordinary asset classification - Cost recovery, depreciation, and amortization - Recognition of gains and losses |
| Business Law | 10-20% | - Agency relationships - Contracts and UCC Article 2 - Debtor-creditor relationships and bankruptcy - Secured transactions (UCC Article 9) - Business structure legal framework |
| Ethics, Professional Responsibilities, and Federal Tax Procedures | 10-20% | - IRS audit, appeals, and collection procedures - Treasury Department Circular 230 rules - Licensing and disciplinary systems - Tax preparer penalties and due diligence - Ethics and responsibilities in tax practice |
| Federal Taxation of Individuals | 15-25% | - Loss limitations and tax computation - Adjustments, deductions, and credits - Pass-through entity income reporting - Gross income inclusions and exclusions - Filing status and exemptions |
| Federal Taxation of Entities | 28-38% | - Tax-exempt organizations - Partnerships and LLCs - Book-tax differences and distributions - C Corporations - S Corporations |
AICPA CPA Regulation Sample Questions:
1. Which of the following sales should be reported as a capital gain?
A) Real property subdivided and sold by a dealer.
B) Government bonds sold by an individual investor.
C) Sale of inventory.
D) Sale of equipment.
2. Which one of the following will result in an accruable expense for an accrual-basis taxpayer?
A) A signed contract for repair work to be done and the work is to be completed at a later date.
B) A repair completed prior to year end but not invoiced.
C) A repair completed prior to year end and paid upon completion.
D) An invoice dated prior to year end but the repair completed after year end.
3. Barkley owns a vacation cabin that was rented to unrelated parties for 10 days during the year for $2,500.
The cabin was used personally by Barkley for three months and left vacant for the rest of the year.
Expenses for the cabin were as follows:
Real estate taxes $1,000
Maintenance and utilities $2,000
How much rental income (loss) is included in Barkley's adjusted gross income?
A) $0
B) $(500)
C) $500
D) $(1,500)
4. Cobb, an unmarried individual, had an adjusted gross income of $200,000 in 1990 before any IRA
deduction, taxable social security benefits, or passive activity losses. Cobb incurred a loss of $30,000 in
1 990 from rental real estate in which he actively participated. What amount of loss attributable to this
rental real estate can be used in 1990 as an offset against income from nonpassive sources?
A) $0
B) $12,500
C) $25,000
D) $30,000
5. In which of the following situations may taxpayers file as married filing jointly?
A) Taxpayers who were married but lived apart during the year.
B) Taxpayers who were married but lived under a legal separation agreement at the end of the year.
C) Taxpayers who were divorced during the year.
D) Taxpayers who were legally separated but lived together for the entire year.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: A |






