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.
| Source | What it covers | Also tested in |
|---|---|---|
| IRC Sec. 61 | Gross income defined | REG.III.A, REG.IV.A, REG.IV.E, REG.V.C, TCP.I.C |
| IRC Sec. 101 | Certain death benefits | REG.IV.A, REG.IV.E, REG.V.A, TCP.I.D |
| IRC Sec. 102 | Gifts and inheritances | REG.IV.A, REG.IV.E, TCP.I.C, TCP.IV.B, TCP.IV.C |
| IRC Sec. 103 | Interest on State and local bonds | REG.IV.A, REG.IV.E, REG.V.A |
| IRC Sec. 164 | Taxes | REG.II.D, REG.III.A, REG.IV.C, REG.IV.F |
| IRC Sec. 1012 | cost | REG.III.A, REG.IV.A, REG.IV.E, TCP.I.C |
| IRC Sec. 1014 | Basis of property acquired from a decedent | REG.III.A, REG.IV.A, REG.IV.E, TCP.I.D |
| IRC Sec. 1015 | Basis of property acquired by gifts and transfers in trust | REG.III.A, REG.IV.A, REG.IV.E, TCP.I.C, TCP.IV.B, TCP.IV.C |
| IRC Sec. 1016 | Adjustments to basis | REG.III.A, REG.III.B, REG.IV.A, REG.IV.E |
| IRC Sec. 1041 | Transfers of property between spouses or incident to divorce | REG.III.A, REG.IV.A, REG.IV.E, TCP.IV.A |
| IRC Sec. 1223 | Holding period of property | REG.III.A, REG.IV.A |
| Uniform Commercial Code | REG.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.