Partnerships on the REG CPA Exam
Last reviewed
Partnerships is tested on the REG section of the CPA Exam as blueprint group REG.V.D, 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.D, Partnerships
- Sources mapped
- 18
Which law is tested under partnerships on REG?
On the REG section, partnerships is tested against 18 sources: IRC Sec. 701 (Partners, not partnership, subject to tax); 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. 723 (Basis of property contributed to partnership); IRC Sec. 731 (Extent of recognition of gain or loss on distribution); IRC Sec. 732 (Basis of distributed property other than money); IRC Sec. 733 (Basis of distributee partner’s interest); IRC Sec. 735 (Character of gain or loss on disposition of distributed property); IRC Sec. 736 (Payments to a retiring partner or a deceased partner’s successor in interest); IRC Sec. 743 (Special rules where section 754 election or substantial built-in loss); IRC Sec. 751 (Unrealized receivables and inventory items); IRC Sec. 752 (Treatment of certain liabilities); IRC Sec. 754 (Manner of electing optional adjustment to basis of partnership property); Treasury Regulations.
| Source | What it covers | Also tested in |
|---|---|---|
| IRC Sec. 701 | Partners, not partnership, subject to tax | REG.II.E, REG.IV.B |
| IRC Sec. 702 | Income and credits of partner | REG.IV.B, REG.V.E, TCP.III.D |
| IRC Sec. 704 | Partner’s distributive share | REG.IV.B, REG.V.E, 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.E, TCP.II.C, TCP.III.D |
| IRC Sec. 707 | Transactions between partner and partnership | REG.IV.B, REG.V.E, 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.E, TCP.III.A |
| IRC Sec. 721 | Nonrecognition of gain or loss on contribution | REG.V.E, TCP.III.A, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 723 | Basis of property contributed to partnership | TCP.II.C, TCP.III.A, TCP.III.D |
| IRC Sec. 731 | Extent of recognition of gain or loss on distribution | REG.V.E, TCP.II.C, TCP.III.A, TCP.III.D, TCP.IV.C |
| IRC Sec. 732 | Basis of distributed property other than money | Only here |
| IRC Sec. 733 | Basis of distributee partner’s interest | Only here |
| IRC Sec. 735 | Character of gain or loss on disposition of distributed property | Only here |
| IRC Sec. 736 | Payments to a retiring partner or a deceased partner’s successor in interest | Only here |
| IRC Sec. 743 | Special rules where section 754 election or substantial built-in loss | TCP.II.C, TCP.III.D, TCP.IV.C |
| IRC Sec. 751 | Unrealized receivables and inventory items | TCP.II.C |
| IRC Sec. 752 | Treatment of certain liabilities | REG.IV.D, REG.V.E, TCP.II.C, TCP.III.A, TCP.III.C, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 754 | Manner of electing optional adjustment to basis of partnership property | TCP.II.C, TCP.III.A, TCP.III.D |
| Treasury Regulations | REG.II.D, REG.IV.D, REG.V.A, REG.V.E, REG.V.F, TCP.II.D |
Is partnerships also tested outside REG?
Yes. 13 of the 18 sources behind REG.V.D are also tested in TCP: 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. 723 (Basis of property contributed to partnership) in TCP.II.C, TCP.III.A, TCP.III.D; 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. 743 (Special rules where section 754 election or substantial built-in loss) in TCP.II.C, TCP.III.D, TCP.IV.C; IRC Sec. 751 (Unrealized receivables and inventory items) in TCP.II.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. 754 (Manner of electing optional adjustment to basis of partnership property) in TCP.II.C, TCP.III.A, TCP.III.D; 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 partnerships tested on the CPA Exam?
Partnerships is tested on the REG section of the CPA Exam as blueprint group REG.V.D, in REG Area V, Federal Taxation of Entities (including tax preparation), which carries 23 to 33% of the section.