Gross income (inclusions and exclusions) on the REG CPA Exam
Last reviewed
Gross income (inclusions and exclusions) is tested on the REG section of the CPA Exam as blueprint group REG.IV.A, in REG Area IV, Federal Taxation of Individuals, which carries 22 to 32% of the section.
- Section
- REG, Regulation
- Area
- REG.IV, Federal Taxation of Individuals, 22 to 32% of the section
- Group
- REG.IV.A, Gross income (inclusions and exclusions)
- Sources mapped
- 23
Which law is tested under gross income (inclusions and exclusions) on REG?
On the REG section, gross income (inclusions and exclusions) is tested against 23 sources: IRC Sec. 61 (Gross income defined); IRC Sec. 71; IRC Sec. 72 (Annuities; certain proceeds of endowment and life insurance contracts); IRC Sec. 86 (Social security and tier 1 railroad retirement benefits); IRC Sec. 101 (Certain death benefits); IRC Sec. 102 (Gifts and inheritances); IRC Sec. 103 (Interest on State and local bonds); IRC Sec. 108 (Income from discharge of indebtedness); IRC Sec. 117 (Qualified scholarships); IRC Sec. 119 (Meals or lodging furnished for the convenience of the employer); IRC Sec. 121 (Exclusion of gain from sale of principal residence); IRC Sec. 129 (Dependent care assistance programs); IRC Sec. 132 (Certain fringe benefits); IRC Sec. 301 (Distributions of property); IRC Sec. 316 (Dividend defined); 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); IRC Sec. 7872 (Treatment of loans with below-market interest rates); Uniform Commercial Code.
| Source | What it covers | Also tested in |
|---|---|---|
| IRC Sec. 61 | Gross income defined | REG.II.B, REG.III.A, REG.IV.E, REG.V.C, TCP.I.C |
| IRC Sec. 71 | REG.IV.E | |
| IRC Sec. 72 | Annuities; certain proceeds of endowment and life insurance contracts | TCP.I.D |
| IRC Sec. 86 | Social security and tier 1 railroad retirement benefits | Only here |
| IRC Sec. 101 | Certain death benefits | REG.II.B, REG.IV.E, REG.V.A, TCP.I.D |
| IRC Sec. 102 | Gifts and inheritances | REG.II.B, REG.IV.E, TCP.I.C, TCP.IV.B, TCP.IV.C |
| IRC Sec. 103 | Interest on State and local bonds | REG.II.B, REG.IV.E, REG.V.A |
| IRC Sec. 108 | Income from discharge of indebtedness | TCP.I.A |
| IRC Sec. 117 | Qualified scholarships | Only here |
| IRC Sec. 119 | Meals or lodging furnished for the convenience of the employer | Only here |
| IRC Sec. 121 | Exclusion of gain from sale of principal residence | TCP.IV.A |
| IRC Sec. 129 | Dependent care assistance programs | Only here |
| IRC Sec. 132 | Certain fringe benefits | REG.IV.E |
| IRC Sec. 301 | Distributions of property | REG.V.B, TCP.II.A, TCP.III.B |
| IRC Sec. 316 | Dividend defined | REG.V.B |
| IRC Sec. 1012 | cost | REG.II.B, REG.III.A, REG.IV.E, TCP.I.C |
| IRC Sec. 1014 | Basis of property acquired from a decedent | REG.II.B, REG.III.A, REG.IV.E, TCP.I.D |
| IRC Sec. 1015 | Basis of property acquired by gifts and transfers in trust | REG.II.B, REG.III.A, REG.IV.E, TCP.I.C, TCP.IV.B, TCP.IV.C |
| IRC Sec. 1016 | Adjustments to basis | REG.II.B, REG.III.A, REG.III.B, REG.IV.E |
| IRC Sec. 1041 | Transfers of property between spouses or incident to divorce | REG.II.B, REG.III.A, REG.IV.E, TCP.IV.A |
| IRC Sec. 1223 | Holding period of property | REG.II.B, REG.III.A |
| IRC Sec. 7872 | Treatment of loans with below-market interest rates | TCP.IV.C |
| Uniform Commercial Code | REG.II.B, REG.II.C, REG.III.A, REG.IV.E, REG.V.C |
Is gross income (inclusions and exclusions) also tested outside REG?
Yes. 12 of the 23 sources behind REG.IV.A are also tested in TCP: IRC Sec. 61 (Gross income defined) in TCP.I.C; IRC Sec. 72 (Annuities; certain proceeds of endowment and life insurance contracts) in TCP.I.D; 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. 108 (Income from discharge of indebtedness) in TCP.I.A; IRC Sec. 121 (Exclusion of gain from sale of principal residence) in TCP.IV.A; IRC Sec. 301 (Distributions of property) in TCP.II.A, TCP.III.B; 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; IRC Sec. 7872 (Treatment of loans with below-market interest rates) in TCP.IV.C.
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 gross income (inclusions and exclusions) tested on the CPA Exam?
Gross income (inclusions and exclusions) is tested on the REG section of the CPA Exam as blueprint group REG.IV.A, in REG Area IV, Federal Taxation of Individuals, which carries 22 to 32% of the section.