PocketCPA

Contracts on the REG CPA Exam

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Contracts is tested on the REG section of the CPA Exam as blueprint group REG.II.B, in REG Area II, Business Law, which carries 15 to 25% of the section.

Section
REG, Regulation
Area
REG.II, Business Law, 15 to 25% of the section
Group
REG.II.B, Contracts
Sources mapped
12

Which law is tested under contracts on REG?

On the REG section, contracts is tested against 12 sources: IRC Sec. 61 (Gross income defined); IRC Sec. 101 (Certain death benefits); IRC Sec. 102 (Gifts and inheritances); IRC Sec. 103 (Interest on State and local bonds); IRC Sec. 164 (Taxes); 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. 1041 (Transfers of property between spouses or incident to divorce); IRC Sec. 1223 (Holding period of property); Uniform Commercial Code.

SourceWhat it coversAlso tested in
IRC Sec. 61Gross income definedREG.III.A, REG.IV.A, REG.IV.E, REG.V.C, TCP.I.C
IRC Sec. 101Certain death benefitsREG.IV.A, REG.IV.E, REG.V.A, TCP.I.D
IRC Sec. 102Gifts and inheritancesREG.IV.A, REG.IV.E, TCP.I.C, TCP.IV.B, TCP.IV.C
IRC Sec. 103Interest on State and local bondsREG.IV.A, REG.IV.E, REG.V.A
IRC Sec. 164TaxesREG.II.D, REG.III.A, REG.IV.C, REG.IV.F
IRC Sec. 1012costREG.III.A, REG.IV.A, REG.IV.E, TCP.I.C
IRC Sec. 1014Basis of property acquired from a decedentREG.III.A, REG.IV.A, REG.IV.E, TCP.I.D
IRC Sec. 1015Basis of property acquired by gifts and transfers in trustREG.III.A, REG.IV.A, REG.IV.E, TCP.I.C, TCP.IV.B, TCP.IV.C
IRC Sec. 1016Adjustments to basisREG.III.A, REG.III.B, REG.IV.A, REG.IV.E
IRC Sec. 1041Transfers of property between spouses or incident to divorceREG.III.A, REG.IV.A, REG.IV.E, TCP.IV.A
IRC Sec. 1223Holding period of propertyREG.III.A, REG.IV.A
Uniform Commercial CodeREG.II.C, REG.III.A, REG.IV.A, REG.IV.E, REG.V.C

Is contracts also tested outside REG?

Yes. 7 of the 12 sources behind REG.II.B are also tested in TCP: IRC Sec. 61 (Gross income defined) in TCP.I.C; IRC Sec. 101 (Certain death benefits) in TCP.I.D; IRC Sec. 102 (Gifts and inheritances) in TCP.I.C, 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. 1041 (Transfers of property between spouses or incident to divorce) in TCP.IV.A.

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 contracts tested on the CPA Exam?

Contracts is tested on the REG section of the CPA Exam as blueprint group REG.II.B, in REG Area II, Business Law, which carries 15 to 25% of the section.