Reporting of items from pass-through entities on the REG CPA Exam
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Reporting of items from pass-through entities is tested on the REG section of the CPA Exam as blueprint group REG.IV.B, 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.B, Reporting of items from pass-through entities
- Sources mapped
- 18
Which law is tested under reporting of items from pass-through entities on REG?
On the REG section, reporting of items from pass-through entities is tested against 18 sources: IRC Sec. 179 (Election to expense certain depreciable business assets); IRC Sec. 465 (Deductions limited to amount at risk); IRC Sec. 469 (Passive activity losses and credits limited); IRC Sec. 701 (Partners, not partnership, subject to tax); IRC Sec. 702 (Income and credits of partner); IRC Sec. 703 (Partnership computations); IRC Sec. 704 (Partner’s distributive share); IRC Sec. 705 (Determination of basis of partner’s interest); IRC Sec. 706 (Taxable years of partner and partnership); IRC Sec. 707 (Transactions between partner and partnership); IRC Sec. 1231 (Property used in the trade or business and involuntary conversions); IRC Sec. 1245 (Gain from dispositions of certain depreciable property); IRC Sec. 1363 (Effect of election on corporation); IRC Sec. 1366 (Pass-thru of items to shareholders); IRC Sec. 1367 (Adjustments to basis of stock of shareholders, etc.); IRC Sec. 1377 (Definitions and special rule); IRC Sec. 1402 (Definitions); IRC Sec. 6031.
| Source | What it covers | Also tested in |
|---|---|---|
| IRC Sec. 179 | Election to expense certain depreciable business assets | REG.III.B, REG.V.A, TCP.IV.B |
| IRC Sec. 465 | Deductions limited to amount at risk | REG.IV.D, REG.V.E, TCP.I.B, TCP.IV.B |
| IRC Sec. 469 | Passive activity losses and credits limited | REG.IV.D, REG.V.E, TCP.I.B, TCP.IV.B |
| IRC Sec. 701 | Partners, not partnership, subject to tax | REG.II.E, REG.V.D |
| IRC Sec. 702 | Income and credits of partner | REG.V.D, REG.V.E, TCP.III.D |
| IRC Sec. 703 | Partnership computations | Only here |
| IRC Sec. 704 | Partner’s distributive share | REG.V.D, 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.V.D, REG.V.E, TCP.II.C, TCP.III.D |
| IRC Sec. 706 | Taxable years of partner and partnership | Only here |
| IRC Sec. 707 | Transactions between partner and partnership | REG.V.D, REG.V.E, TCP.II.C, TCP.III.A, TCP.III.D, TCP.IV.A, TCP.IV.B, TCP.IV.C |
| IRC Sec. 1231 | Property used in the trade or business and involuntary conversions | REG.III.B, TCP.IV.B |
| IRC Sec. 1245 | Gain from dispositions of certain depreciable property | REG.III.A, REG.III.B, TCP.IV.B |
| IRC Sec. 1363 | Effect of election on corporation | REG.II.E, REG.V.A, TCP.III.B, TCP.III.C |
| IRC Sec. 1366 | Pass-thru of items to shareholders | REG.IV.D, REG.V.C, TCP.I.B, TCP.II.B, TCP.III.C |
| IRC Sec. 1367 | Adjustments to basis of stock of shareholders, etc. | REG.V.C, TCP.II.B, TCP.III.C |
| IRC Sec. 1377 | Definitions and special rule | REG.V.C, TCP.II.B, TCP.III.C |
| IRC Sec. 1402 | Definitions | REG.II.D, REG.IV.F, REG.V.E, TCP.III.C |
| IRC Sec. 6031 | REG.V.E |
Is reporting of items from pass-through entities also tested outside REG?
Yes. 14 of the 18 sources behind REG.IV.B are also tested in TCP: IRC Sec. 179 (Election to expense certain depreciable business assets) in TCP.IV.B; 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. 1231 (Property used in the trade or business and involuntary conversions) in TCP.IV.B; IRC Sec. 1245 (Gain from dispositions of certain depreciable property) in TCP.IV.B; IRC Sec. 1363 (Effect of election on corporation) in TCP.III.B, TCP.III.C; IRC Sec. 1366 (Pass-thru of items to shareholders) in TCP.I.B, TCP.II.B, TCP.III.C; IRC Sec. 1367 (Adjustments to basis of stock of shareholders, etc.) in TCP.II.B, TCP.III.C; IRC Sec. 1377 (Definitions and special rule) in TCP.II.B, TCP.III.C; IRC Sec. 1402 (Definitions) in TCP.III.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 reporting of items from pass-through entities tested on the CPA Exam?
Reporting of items from pass-through entities is tested on the REG section of the CPA Exam as blueprint group REG.IV.B, in REG Area IV, Federal Taxation of Individuals, which carries 22 to 32% of the section.