Free REG CPA Practice Question Walkthroughs

On this page you’ll find free REG practice question walkthroughs on topics from the AICPA CPA exam blueprints for the REG exam. Most of the videos focus on “Application” tasks listed in the blueprints, as those are usually the calculation-based topics.

REG III: Federal Taxation of Property Transactions

Application: Calculate the tax basis of an asset purchased for use in a trade or business.

Application: Calculate the tax basis of an asset converted from personal to business use.

Application: Calculate the tax basis of property received as a gift or as an inheritance from a decedent

Application: Calculate the tax basis of stock acquired through a wash sale

Application: Calculate the basis of intangible assets, including organization costs, start-up costs and loan costs

Application: Calculate tax depreciation for tangible business property using MACRS, including identification of the applicable recovery period and convention

Application: Determine property eligible for a Section 179 deduction

Application: Calculate tax amortization for intangible assets

REG IV: Federal Taxation of Individuals

Application: Calculate the amounts that should be included in an individual’s gross income as reported on Form 1040 – U.S. Individual Income Tax Return, including wages, interest and dividends, guaranteed payments received from a partnership, income from a qualified retirement plan and punitive damages

Application: Calculate the capital gain that should be included in an individual’s gross income as reported on Form 1040 – U.S. Individual Income Tax Return from transactions, including gains from the sale of investments or virtual currencies, assets received as gifts and assets received from a decedent and classify them as long-term or short-term.

• Sale of Investments or Virtual Currencies
• Sale of Gifted Assets
• Sale of Inherited Assets/Assets Received from a Decedent

Application: Calculate the amounts that should be excluded from an individual’s gross income as reported on Form 1040 – U.S. Individual Income Tax Return, including tax-exempt interest, gifts received and life insurance proceeds.

• Tax-Exempt Interest
• Gifts Received and Life Insurance Proceeds

Application: Calculate the income reported in the year of death for a decedent on Form 1040 – U.S. Individual Income Tax Return

Application: Use information provided from disregarded and pass-through entities in which an individual has an ownership interest to report ordinary business income (loss) and separately stated items on an individual’s tax return.

• Disregarded Entities (Schedule C, Schedule E)
• Pass-through Entities (K-1, Separately Stated Items)

Application: Identify adjustments allowed in the calculation of adjusted gross income given a specific scenario, including a contribution to a qualified retirement plan, contribution to a health savings plan and self-employment expenses.

• HSA and Retirement Contributions
• Self-employment and Other Deductions

Application: Identify itemized deductions allowed in the calculation of taxable income given a specific scenario, including medical expenses, qualified residence interest expense, casualty losses, taxes and charitable contributions.

• Medical Expenses
• Mortgage Interest (Qualified Residence Interest Expense)
• Casualty Losses
• Real Estate, Personal Property, and Income Taxes
• Charitable Contributions

Application: Calculate the qualifying business income (QBI) deduction for federal income tax purposes.

Application: Calculate losses disallowed for tax purposes, such as from a hobby, wash sale or sale of a personal-use asset.

Application: Identify taxpayer filing status for tax purposes given a specific scenario.

Remembering and Understanding: Recall relationships meeting the definition of dependent for purposes of determining taxpayer filing status

Application: Calculate the tax liability based on an individual’s taxable income given a specific scenario, including consideration of the net
investment income tax.

REG V: Federal Taxation of Entities

Application: Identify permanent vs. temporary differences to be reported on Schedule M-3 in a given scenario.

• Temporary Differences
• Permanent Differences

Application: Calculate taxable income for a C corporation.

• C Corporation Estimated Tax Payments and Foreign Income Tax Credits
• Personal Holding Companies

Application: Calculate the current-year net operating or capital loss of a C corporation, and the limitations on use in the current year.

Application: Calculate state taxable income using the applicable apportionment factors given a specific scenario.

Application: Identify situations in which S corporation status would be revoked or terminated for tax purposes.

Application: Calculate ordinary business income (loss) and separately stated items for an S corporation for tax purposes.

Application: Calculate the impact of current year operations on an S corporation’s accumulated adjustments account.

Application: Calculate changes in a shareholders debt basis in an S corporation resulting from current year repayment of debt

Application: Calculate ordinary business income (loss) and separately stated items for a partnership for tax purposes, including consideration of guaranteed payments disbursed.

Application: Calculate the partner’s basis in a partnership for tax purposes resulting from business operations, cash contributions by a partner, cash distributions to a partner and changes in existing partnership liabilities.