Cost recovery (depreciation and amortization) on the REG CPA Exam
Last reviewed
Cost recovery (depreciation and amortization) is tested on the REG section of the CPA Exam as blueprint group REG.III.B, 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.B, Cost recovery (depreciation and amortization)
- Sources mapped
- 12
Which law is tested under cost recovery (depreciation and amortization) on REG?
On the REG section, cost recovery (depreciation and amortization) is tested against 12 sources: IRC Sec. 1 (Tax imposed); IRC Sec. 168 (Accelerated cost recovery system); IRC Sec. 179 (Election to expense certain depreciable business assets); IRC Sec. 197 (Amortization of goodwill and certain other intangibles); IRC Sec. 280F (Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes); IRC Sec. 291 (Special rules relating to corporate preference items); IRC Sec. 453 (Installment method); IRC Sec. 1016 (Adjustments to basis); IRC Sec. 1231 (Property used in the trade or business and involuntary conversions); IRC Sec. 1239 (Gain from sale of depreciable property between certain related taxpayers); IRC Sec. 1245 (Gain from dispositions of certain depreciable property); IRC Sec. 1250 (Gain from dispositions of certain depreciable realty).
| Source | What it covers | Also tested in |
|---|---|---|
| IRC Sec. 1 | Tax imposed | REG.IV.E, REG.IV.F, TCP.III.B, TCP.IV.B |
| IRC Sec. 168 | Accelerated cost recovery system | REG.V.A, TCP.IV.B |
| IRC Sec. 179 | Election to expense certain depreciable business assets | REG.IV.B, REG.V.A, TCP.IV.B |
| IRC Sec. 197 | Amortization of goodwill and certain other intangibles | TCP.IV.B |
| IRC Sec. 280F | Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes | TCP.IV.B |
| IRC Sec. 291 | Special rules relating to corporate preference items | REG.V.A |
| IRC Sec. 453 | Installment method | REG.V.A, TCP.I.A, TCP.IV.C |
| IRC Sec. 1016 | Adjustments to basis | REG.II.B, REG.III.A, REG.IV.A, REG.IV.E |
| IRC Sec. 1231 | Property used in the trade or business and involuntary conversions | REG.IV.B, TCP.IV.B |
| IRC Sec. 1239 | Gain from sale of depreciable property between certain related taxpayers | TCP.IV.C |
| IRC Sec. 1245 | Gain from dispositions of certain depreciable property | REG.III.A, REG.IV.B, TCP.IV.B |
| IRC Sec. 1250 | Gain from dispositions of certain depreciable realty | TCP.IV.B |
Is cost recovery (depreciation and amortization) also tested outside REG?
Yes. 10 of the 12 sources behind REG.III.B are also tested in TCP: IRC Sec. 1 (Tax imposed) in TCP.III.B, TCP.IV.B; IRC Sec. 168 (Accelerated cost recovery system) in TCP.IV.B; IRC Sec. 179 (Election to expense certain depreciable business assets) in TCP.IV.B; IRC Sec. 197 (Amortization of goodwill and certain other intangibles) in TCP.IV.B; IRC Sec. 280F (Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes) in TCP.IV.B; IRC Sec. 453 (Installment method) in TCP.I.A, TCP.IV.C; IRC Sec. 1231 (Property used in the trade or business and involuntary conversions) in TCP.IV.B; IRC Sec. 1239 (Gain from sale of depreciable property between certain related taxpayers) in TCP.IV.C; IRC Sec. 1245 (Gain from dispositions of certain depreciable property) in TCP.IV.B; IRC Sec. 1250 (Gain from dispositions of certain depreciable realty) 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 cost recovery (depreciation and amortization) tested on the CPA Exam?
Cost recovery (depreciation and amortization) is tested on the REG section of the CPA Exam as blueprint group REG.III.B, in REG Area III, Federal Taxation of Property Transactions, which carries 5 to 15% of the section.