How long should I study for REG?

Most candidates need 250-350 hours for REG. Plan for 8-10 weeks of full-time study or 14-18 weeks while working. REG requires memorizing tax rules and understanding how they interact.

What is the REG pass rate?

REG has a pass rate around 63%, the highest among core sections. However, candidates often struggle with the breadth of tax topics and business law concepts.

Is REG mostly about taxes?

Federal taxation makes up the majority of REG content, covering individual, business, and property transactions. Business law and ethics represent a smaller but important portion. The tax content requires significant memorization of rules and phase-outs.

Should I study REG before or after TCP?

REG covers foundational tax concepts that TCP builds upon. Most candidates benefit from taking REG before TCP, as the advanced tax planning concepts in TCP assume familiarity with basic tax rules covered in REG.

What are the hardest topics on REG?

Basis calculations, property transactions (including like-kind exchanges under Section 1031), and partnership taxation are commonly cited as the most challenging REG topics. These areas require understanding complex interactions between multiple tax rules.

REG

CPA Exam Section Guide

Regulation

REG covers federal taxation for individuals, entities, and property transactions, along with business law and ethics. This section requires both calculation skills and conceptual understanding.

REGSection Code

Moderate-HighDifficulty

250-300 hoursAvg. Study Time

12+Topics Covered

What This Section Tests

The REG section covers the following key topics:

✓Individual taxation (Form 1040)

✓Corporate taxation (Form 1120)

✓Partnership taxation (Form 1065)

✓S Corporation taxation (Form 1120-S)

✓Property transactions (basis, gains, losses)

✓Gift and estate taxation

✓Tax-exempt organizations

✓Business law fundamentals

✓Contracts and agency

✓Debtor-creditor relationships

✓Business structures and formation

✓Professional ethics (Circular 230)

Why Candidates Commonly Struggle with REG

Trying to memorize tax rates and thresholds that change annually
Not understanding basis concepts - these flow through every topic
Underestimating business law - it's tested more heavily than most expect
Getting lost in the details of complex entity transactions like like-kind exchanges
Poor calculation accuracy on tax computation simulations

What to Prioritize

1
Master basis calculations - original basis, adjusted basis, and basis in property received
2
Understand individual tax calculation flow from gross income to taxable income to tax
3
Focus on entity taxation differences - when income is taxed and how it flows to owners via partnership taxation
4
Don't skip business law - contracts and agency are frequently emphasized and often more approachable
5
Practice property transaction calculations including like-kind exchanges until they're automatic

Effective Study Strategies

REG is best taken after FAR if you have tax experience, or can be taken early if you're fresh from a tax class. See our best exam order guide for more.

Create a flowchart for each entity type showing how income flows from the entity to the owner's return. Understanding this flow is more important than memorizing specific rules.

Basis is the most important concept in REG. If you understand basis, you can work through almost any property or entity transaction. Make this your foundation.

Business law topics follow common sense more than you'd expect. Think about what's fair and reasonable - contract law and agency often follow intuitive principles.

Build a personalized study plan and use free practice materials to supplement. Understanding how a real 1040 or 1065 works helps you answer exam questions.

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What's Included

✓REG practice MCQs & TBS
✓Personalized study plan
✓Progress tracking

Other CPA Sections

FAR

Financial Accounting

AUD

Auditing & Attestation

REG