Basis of assets on the REG CPA Exam
Last reviewed
Basis of assets is tested on the REG section of the CPA Exam as blueprint group REG.III.A, in REG Area III, Federal Taxation of Property Transactions, which carries 5 to 15% of the section.
- Section
- REG, Regulation
- Area
- REG.III, Federal Taxation of Property Transactions, 5 to 15% of the section
- Group
- REG.III.A, Basis of assets
- Sources mapped
- 14
Which law is tested under basis of assets on REG?
On the REG section, basis of assets is tested against 14 sources: IRC Sec. 61 (Gross income defined); IRC Sec. 164 (Taxes); IRC Sec. 267 (Losses, expenses, and interest with respect to transactions between related taxpayers); IRC Sec. 1012 (cost); IRC Sec. 1014 (Basis of property acquired from a decedent); IRC Sec. 1015 (Basis of property acquired by gifts and transfers in trust); IRC Sec. 1016 (Adjustments to basis); IRC Sec. 1031 (Exchange of real property held for productive use or investment); IRC Sec. 1033 (Involuntary conversions); IRC Sec. 1041 (Transfers of property between spouses or incident to divorce); IRC Sec. 1091 (Loss from wash sales of stock or securities); IRC Sec. 1223 (Holding period of property); IRC Sec. 1245 (Gain from dispositions of certain depreciable property); Uniform Commercial Code.
| Source | What it covers | Also tested in |
|---|---|---|
| IRC Sec. 61 | Gross income defined | REG.II.B, REG.IV.A, REG.IV.E, REG.V.C, TCP.I.C |
| IRC Sec. 164 | Taxes | REG.II.B, REG.II.D, REG.IV.C, REG.IV.F |
| IRC Sec. 267 | Losses, expenses, and interest with respect to transactions between related taxpayers | REG.IV.D, REG.V.A, TCP.I.C, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 1012 | cost | REG.II.B, REG.IV.A, REG.IV.E, TCP.I.C |
| IRC Sec. 1014 | Basis of property acquired from a decedent | REG.II.B, REG.IV.A, REG.IV.E, TCP.I.D |
| IRC Sec. 1015 | Basis of property acquired by gifts and transfers in trust | REG.II.B, REG.IV.A, REG.IV.E, TCP.I.C, TCP.IV.B, TCP.IV.C |
| IRC Sec. 1016 | Adjustments to basis | REG.II.B, REG.III.B, REG.IV.A, REG.IV.E |
| IRC Sec. 1031 | Exchange of real property held for productive use or investment | TCP.III.A, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 1033 | Involuntary conversions | TCP.IV.A |
| IRC Sec. 1041 | Transfers of property between spouses or incident to divorce | REG.II.B, REG.IV.A, REG.IV.E, TCP.IV.A |
| IRC Sec. 1091 | Loss from wash sales of stock or securities | REG.IV.D, TCP.IV.A |
| IRC Sec. 1223 | Holding period of property | REG.II.B, REG.IV.A |
| IRC Sec. 1245 | Gain from dispositions of certain depreciable property | REG.III.B, REG.IV.B, TCP.IV.B |
| Uniform Commercial Code | REG.II.B, REG.II.C, REG.IV.A, REG.IV.E, REG.V.C |
Is basis of assets also tested outside REG?
Yes. 10 of the 14 sources behind REG.III.A are also tested in TCP: IRC Sec. 61 (Gross income defined) in TCP.I.C; IRC Sec. 267 (Losses, expenses, and interest with respect to transactions between related taxpayers) in TCP.I.C, TCP.IV.A, TCP.IV.B, TCP.IV.C; IRC Sec. 1012 (cost) in TCP.I.C; IRC Sec. 1014 (Basis of property acquired from a decedent) in TCP.I.D; IRC Sec. 1015 (Basis of property acquired by gifts and transfers in trust) in TCP.I.C, TCP.IV.B, TCP.IV.C; IRC Sec. 1031 (Exchange of real property held for productive use or investment) in TCP.III.A, TCP.IV.A, TCP.IV.B, TCP.IV.C; IRC Sec. 1033 (Involuntary conversions) in TCP.IV.A; IRC Sec. 1041 (Transfers of property between spouses or incident to divorce) in TCP.IV.A; IRC Sec. 1091 (Loss from wash sales of stock or securities) in TCP.IV.A; IRC Sec. 1245 (Gain from dispositions of certain depreciable property) in TCP.IV.B.
Area, group and weight are the AICPA published blueprint. Pass rates are the AICPA published candidate pass rates for 2026 through Q2, read from AICPA & CIMA on 2026-09-30. The AICPA publishes them quarterly. Which Code sections, rules and standards each group is tested against is PocketCPA's own mapping, built from the citations in its lessons and its blind-verified questions. Section captions are the US Code's own headings, from the Legal Information Institute.
Every REG blueprint group · What is tested on REG · Which standards the CPA Exam tests
Common questions
Is basis of assets tested on the CPA Exam?
Basis of assets is tested on the REG section of the CPA Exam as blueprint group REG.III.A, in REG Area III, Federal Taxation of Property Transactions, which carries 5 to 15% of the section.