The changes to the REG section of the CPA Exam are mainly clarifications and don’t change the testable items on the CPA Exam.

Question Clarifications

  • 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.

Task Clarifications

  • 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.

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