CPA REG Cheat Sheet: Taxation and Regulation

Review a compact Certified Public Accountant Taxation and Regulation (CPA REG) cheat sheet for federal tax procedure, business law, individual tax, entity tax, property transactions, basis, and authority before Finance Prep practice.

Use this CPA REG cheat sheet as a short tax-and-law reasoning checklist before mixed practice. CPA REG means Certified Public Accountant Taxation and Regulation; the section rewards candidates who identify taxpayer type, timing, basis, character, authority, and legal effect before choosing the answer.

Open CPA REG practice for the free 72-question diagnostic, topic pages, timed mocks, and the full Finance Prep practice bank.

Exam snapshot

ItemCPA REG cue
ProviderAICPA
SectionTaxation and Regulation (REG)
CPA Exam roleCore section
Time reference4 hours
Passing score reference75
Practice format72-question MCQ diagnostic plus topic drills and mixed practice in Finance Prep

Blueprint checklist

AreaWeightWhat to knowCommon trap
Ethics, Professional Responsibilities and Federal Tax Procedures10-20%authority, preparer responsibilities, penalties, taxpayer rights, IRS proceduretreating procedure as ordinary tax calculation
Business Law15-25%contracts, agency, secured transactions, debtor-creditor, business structuresanswering from common sense instead of legal relationship
Federal Taxation of Property Transactions5-15%basis, amount realized, character, holding period, loss limitsmixing realized gain with recognized gain
Federal Taxation of Individuals22-32%gross income, deductions, credits, filing status, limitationsignoring phaseouts, basis, or timing
Federal Taxation of Entities23-33%C corporations, S corporations, partnerships, entity and owner effectsforgetting who is taxed and when

Must-know distinctions

  • Realized versus recognized: a transaction can create gain that is not fully recognized.
  • Basis versus fair value: tax basis carries the tax history; fair value may not.
  • Individual versus entity tax effect: the same fact can affect both levels differently.
  • Deduction versus credit: deductions reduce taxable income; credits reduce tax.
  • Ordinary income versus capital gain: character affects rate, limitation, and reporting.
  • Authority versus advice: professional responsibility questions often test what can be relied on.
  • Contract duty versus agency authority: legal capacity and authority are separate.

Common traps

  • Starting with the formula before identifying taxpayer type.
  • Treating every distribution as taxable income.
  • Missing basis adjustments after contributions, distributions, losses, or debt changes.
  • Choosing a business-law answer that ignores agency, consideration, priority, or enforceability.
  • Applying an individual tax rule to an entity fact pattern.

Practice strategy

After each CPA REG set, write the taxpayer type, transaction, timing, basis effect, character, and authority issue for missed questions. If misses cluster around entities or property, drill those pages before another timed set.

Revised on Monday, May 25, 2026