The changes to the REG section of the CPA Exam are mainly clarifications and don’t change the testable items on the CPA Exam.
- Assume all information provided in the question is material and should apply all stated assumptions.
- If timing affects the tax treatment of the topic tested, the question will include a clear indication of timing.
- Assume that the event referenced in the question occurred in the current year and apply the most recent tax laws.
- Area III, A, 4 – Federal Taxation of Property Transactions – Acquisition and Disposition of Assets – Related Party Transactions:
- Related Parties: Calculate direct and indirect ownership percentages of stock or partnership interests to determine whether there are related parties for federal income tax purposes.
- Area III, C, 3 – Federal Taxation of Property Transactions – Estate and Gift Taxation – Determination of Taxable Estate:
- Recall assets includible in decedent’s gross estate for federal estate tax purposes.
- Recall allowable estate tax deductions for federal estate tax purposes.