Limited liability companies on the REG CPA Exam
Last reviewed
Limited liability companies is tested on the REG section of the CPA Exam as blueprint group REG.V.E, in REG Area V, Federal Taxation of Entities (including tax preparation), which carries 23 to 33% of the section.
- Section
- REG, Regulation
- Area
- REG.V, Federal Taxation of Entities (including tax preparation), 23 to 33% of the section
- Group
- REG.V.E, Limited liability companies
- Sources mapped
- 16
Which law is tested under limited liability companies on REG?
On the REG section, limited liability companies is tested against 16 sources: IRC Sec. 465 (Deductions limited to amount at risk); IRC Sec. 469 (Passive activity losses and credits limited); IRC Sec. 702 (Income and credits of partner); IRC Sec. 704 (Partner’s distributive share); IRC Sec. 705 (Determination of basis of partner’s interest); IRC Sec. 707 (Transactions between partner and partnership); IRC Sec. 708 (Continuation of partnership); IRC Sec. 721 (Nonrecognition of gain or loss on contribution); IRC Sec. 722 (Basis of contributing partner’s interest); IRC Sec. 731 (Extent of recognition of gain or loss on distribution); IRC Sec. 752 (Treatment of certain liabilities); IRC Sec. 1362 (Election; revocation; termination); IRC Sec. 1402 (Definitions); IRC Sec. 6031; IRC Sec. 7701 (Definitions); Treasury Regulations.
| Source | What it covers | Also tested in |
|---|---|---|
| IRC Sec. 465 | Deductions limited to amount at risk | REG.IV.B, REG.IV.D, TCP.I.B, TCP.IV.B |
| IRC Sec. 469 | Passive activity losses and credits limited | REG.IV.B, REG.IV.D, TCP.I.B, TCP.IV.B |
| IRC Sec. 702 | Income and credits of partner | REG.IV.B, REG.V.D, TCP.III.D |
| IRC Sec. 704 | Partner’s distributive share | REG.IV.B, REG.V.D, TCP.I.B, TCP.II.C, TCP.III.A, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 705 | Determination of basis of partner’s interest | REG.IV.B, REG.V.D, TCP.II.C, TCP.III.D |
| IRC Sec. 707 | Transactions between partner and partnership | REG.IV.B, REG.V.D, TCP.II.C, TCP.III.A, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 708 | Continuation of partnership | REG.V.D, TCP.III.A |
| IRC Sec. 721 | Nonrecognition of gain or loss on contribution | REG.V.D, TCP.III.A, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 722 | Basis of contributing partner’s interest | TCP.III.A, TCP.III.D, TCP.IV.C |
| IRC Sec. 731 | Extent of recognition of gain or loss on distribution | REG.V.D, TCP.II.C, TCP.III.A, TCP.III.D, TCP.IV.C |
| IRC Sec. 752 | Treatment of certain liabilities | REG.IV.D, REG.V.D, TCP.II.C, TCP.III.A, TCP.III.C, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 1362 | Election; revocation; termination | REG.II.E, REG.V.C, TCP.II.B, TCP.III.C |
| IRC Sec. 1402 | Definitions | REG.II.D, REG.IV.B, REG.IV.F, TCP.III.C |
| IRC Sec. 6031 | REG.IV.B | |
| IRC Sec. 7701 | Definitions | REG.I.A, REG.II.E |
| Treasury Regulations | REG.II.D, REG.IV.D, REG.V.A, REG.V.D, REG.V.F, TCP.II.D |
Is limited liability companies also tested outside REG?
Yes. 14 of the 16 sources behind REG.V.E are also tested in TCP: IRC Sec. 465 (Deductions limited to amount at risk) in TCP.I.B, TCP.IV.B; IRC Sec. 469 (Passive activity losses and credits limited) in TCP.I.B, TCP.IV.B; IRC Sec. 702 (Income and credits of partner) in TCP.III.D; IRC Sec. 704 (Partner’s distributive share) in TCP.I.B, TCP.II.C, TCP.III.A, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C; IRC Sec. 705 (Determination of basis of partner’s interest) in TCP.II.C, TCP.III.D; IRC Sec. 707 (Transactions between partner and partnership) in TCP.II.C, TCP.III.A, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C; IRC Sec. 708 (Continuation of partnership) in TCP.III.A; IRC Sec. 721 (Nonrecognition of gain or loss on contribution) in TCP.III.A, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C; IRC Sec. 722 (Basis of contributing partner’s interest) in TCP.III.A, TCP.III.D, TCP.IV.C; IRC Sec. 731 (Extent of recognition of gain or loss on distribution) in TCP.II.C, TCP.III.A, TCP.III.D, TCP.IV.C; IRC Sec. 752 (Treatment of certain liabilities) in TCP.II.C, TCP.III.A, TCP.III.C, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C; IRC Sec. 1362 (Election; revocation; termination) in TCP.II.B, TCP.III.C; IRC Sec. 1402 (Definitions) in TCP.III.C; Treasury Regulations in TCP.II.D.
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 limited liability companies tested on the CPA Exam?
Limited liability companies is tested on the REG section of the CPA Exam as blueprint group REG.V.E, in REG Area V, Federal Taxation of Entities (including tax preparation), which carries 23 to 33% of the section.