US CPA REG (Regulation) — Complete Guide 2026
US CPA REG exam complete guide: syllabus breakdown (US federal tax and business law), exam format, hardest topics, pass rates, and study strategy for Indian CPA candidates.
What is CPA REG?
Regulation (REG) tests US federal taxation and business law. It is one of the most challenging CPA sections for Indian candidates — primarily because US federal tax law is largely unfamiliar, with no Indian equivalent to IRC (Internal Revenue Code), gift tax, estate tax, or partnership taxation rules.
REG Exam Format
| Feature | Details |
|---|---|
| Duration | 4 hours |
| MCQs | 76 MCQs (50% of score) |
| Task-Based Simulations (TBS) | 8 TBS (50% of score) |
| Pass score | 75 (0–99 scale) |
REG Syllabus — Content Areas
| Content Area | Weight |
|---|---|
| Federal Tax Procedures, Professional Responsibilities and Ethics | ~10–20% |
| Business Law | ~10–20% |
| Federal Taxation of Individuals | ~20–30% |
| Federal Taxation of Entities (corporations, partnerships, S-corps, trusts) | ~40–50% |
Key Topics in CPA REG
Federal Taxation of Individuals
- Gross income inclusions and exclusions
- Adjustments to income (AGI calculations)
- Itemised deductions vs standard deduction
- Capital gains and losses — short-term vs long-term rates
- Alternative Minimum Tax (AMT)
- Filing status and dependents
Federal Taxation of Business Entities
- C Corporation taxation — income, deductions, distributions, dividends
- S Corporation elections, pass-through taxation, basis calculations
- Partnership taxation — formation, distributions, guaranteed payments, basis
- LLCs — default and elective tax treatment
- Depreciation (MACRS), Section 179 expensing, bonus depreciation
Business Law
- Agency relationships
- Contracts (offer, acceptance, consideration, breach)
- Sales and secured transactions (UCC Articles 2 and 9)
- Federal securities regulation (Securities Act 1933, Exchange Act 1934, SOX)
- Bankruptcy (Chapter 7, 11, 13)
- Employment law
REG Study Strategy for Indian Students
REG is the most alien section for Indian candidates — US tax law has no direct equivalent in India. Key advice:
- Accept the memorisation requirement: Tax rates, AMT thresholds, specific IRC rules require memorisation — flashcards are essential
- Entity taxation is the highest weight: Master C corp, S corp, and partnership taxation before anything else
- Business law is more straightforward: UCC and contract law concepts are logical — use this section to bank points
- TBS practice: Tax return preparation simulations require applying multiple rules simultaneously — practice under exam conditions
- Use Becker or Roger CPA: Their mnemonics and tax summaries are particularly helpful for REG
Indian candidates who have completed ACCA's UK and international tax knowledge have useful conceptual frameworks, though US-specific rules require dedicated study. Explore ACCA with Learnsignal.
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Learnsignal Education Team
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