REG CPA Exam Questions with complete
solutions (2024-2025)
Disclosure kof ktaxpayer kinformation kto kother kis kpermissible kunder k3 kways: k-
kANS✓✓-1. kcomputer kprocessing k2. kpeer kreview kprocess k3. kThrough kan
kadministrative korder.
Itemized kdeductions knot klimited kto klimitation: kGIMMICK k- kANS✓✓-Gambling
klosses k(to kthe kextent kof kgambling kwinnings) k2. kInvestment kInterest kexpense
k3. kMedical kExpenses k4. kCasualt kLosses k(non-business)
non-deductible ktaxes k- kANS✓✓-Federal kIncome kTaxes k2. kInheritance ktax k3.
kBusiness kTaxes k(deductible kon kSch. kE)
Altertrnative kMinimum kTax: kAdjustments k(+/-) kPANIC kTIME k- kANS✓✓-Passive
kactivity kLosses, kAcc. kDep., kNOL's, kInstallment kIncome kof ka kDealer, kContracts
k(% kcomplet kvs. kcompleted) kTax kdeductions, kMtg. kInterest knot kused k4 khouse,
kMedical(limited kto k10% kof kAGI) kMisc. kdeductions kare kNOT kallowed,
kExemptions k(personal) kand kstandard kdeduction
Tax kPreferences k- kANS✓✓-Always kADD kBACK kPPP kPrivate kactivity kbond
kinterest kincome kPercentage kdepletion kthe kexcess kover kadj. kbasis kof
kproperty, kpre- k1987 kacceleateraed kdepreciation
Organizational k& kStart-up kexpenses k- kANS✓✓-Tax: k5000 kexpense kmaximum
kremainder kamortized kover k180 kmonths kGAAP- kexpensed kwhen kincurred
, Capital kLosses kfor kcorportations k- kANS✓✓-Corps kcan konly kuse kto koffset
kCap kgains. kCarryback/over= k3/5 kapplied konly kto kcap kgains.
kcarryback/forwards kare kalways ktreated kas ka kS/T kCap. kLOSS
NOL kfor kCorps k- kANS✓✓-carryback/forward= k2/20 kNo kCharitable kcontribution
kdeduction kor kDRD kallowed kbefore kcalculatiting ka kNOL
Rule k504 kunder k1933: k- kANS✓✓-1. kExempts kissuance kup kto k$1 kmillion k2.
kGeneral ksolicittion kis kok k3. kmust kbe ksold kw/in k12 kmnths k4. ksold kto kany k#
kof kinvestors k(seed kcapital) k5. kresell kis kok
Rule k506 kunder k1933: k- kANS✓✓-1. kPrivate kplacement kof kunlimited kdollar
kamount k2. k35 knon-accredited ksales kto kunlimited kaccredited
Rule k505 kunder k1933: k- kANS✓✓-1. kExempts kissuances kof kup kt
Punitive kDamages k- kANS✓✓-intended kto kreform kor kdeter kthe kdefendant kand
kothers kfrom kengaging kin kconduct ksimilar kto kthat kwhich kformed kthe kbasis kof
kthe klawsuit. kAlthough kthe kpurpose kof kpunitive kdamages kis knot kto
kcompensate kthe kplaintiff, kthe kplaintiff kwill kin kfact kreceive kall kor ksome
kportion kof kthe kpunitive kdamage kaward. kNot kavailable kUCC.
suing kfor kNEGLIGENCE- kMUST kPROVE k4 kTHINGS: kDBCI k- kANS✓✓-dUTY kOF
kCARE, kBREACH k(Lack kof kDue kCare), kCASUALITY kAND kINJURY
Prefrential kTransfer k- kANS✓✓-The ktransfor kof kdebtors kproperty kmade kfro kthe
kbenefit kof ka kcreditor kon kaccount kof kan kantecedent kdebt kwhile kthe kdebtor
kwas kinsolvent. k1 kyr kfor kan kinsider kand k90 kdays kfor kothers.
Chapter k7 k- kANS✓✓-provides kfor kliquidation kof ka kdebtor's kestate. kn ka
kliquidation kproceeding, kafter kthe kpetition kis kfiled, ka ktrustee kwill kbe kappointed
kand kan kautomatic kstay kagainst kcreditor kcollection kproceedings kgoes kinto
keffect.
Chapter k11 k- kANS✓✓-is kfor kdebt kreorganization kand kis kavailable kto kfamily
kfarmers kwith kregular kincome.
Co kInsurance k- kANS✓✓-[FV kof kPolicy k/ k(co-ins. k% kx kFMV kof kProperty)] kLoss
solutions (2024-2025)
Disclosure kof ktaxpayer kinformation kto kother kis kpermissible kunder k3 kways: k-
kANS✓✓-1. kcomputer kprocessing k2. kpeer kreview kprocess k3. kThrough kan
kadministrative korder.
Itemized kdeductions knot klimited kto klimitation: kGIMMICK k- kANS✓✓-Gambling
klosses k(to kthe kextent kof kgambling kwinnings) k2. kInvestment kInterest kexpense
k3. kMedical kExpenses k4. kCasualt kLosses k(non-business)
non-deductible ktaxes k- kANS✓✓-Federal kIncome kTaxes k2. kInheritance ktax k3.
kBusiness kTaxes k(deductible kon kSch. kE)
Altertrnative kMinimum kTax: kAdjustments k(+/-) kPANIC kTIME k- kANS✓✓-Passive
kactivity kLosses, kAcc. kDep., kNOL's, kInstallment kIncome kof ka kDealer, kContracts
k(% kcomplet kvs. kcompleted) kTax kdeductions, kMtg. kInterest knot kused k4 khouse,
kMedical(limited kto k10% kof kAGI) kMisc. kdeductions kare kNOT kallowed,
kExemptions k(personal) kand kstandard kdeduction
Tax kPreferences k- kANS✓✓-Always kADD kBACK kPPP kPrivate kactivity kbond
kinterest kincome kPercentage kdepletion kthe kexcess kover kadj. kbasis kof
kproperty, kpre- k1987 kacceleateraed kdepreciation
Organizational k& kStart-up kexpenses k- kANS✓✓-Tax: k5000 kexpense kmaximum
kremainder kamortized kover k180 kmonths kGAAP- kexpensed kwhen kincurred
, Capital kLosses kfor kcorportations k- kANS✓✓-Corps kcan konly kuse kto koffset
kCap kgains. kCarryback/over= k3/5 kapplied konly kto kcap kgains.
kcarryback/forwards kare kalways ktreated kas ka kS/T kCap. kLOSS
NOL kfor kCorps k- kANS✓✓-carryback/forward= k2/20 kNo kCharitable kcontribution
kdeduction kor kDRD kallowed kbefore kcalculatiting ka kNOL
Rule k504 kunder k1933: k- kANS✓✓-1. kExempts kissuance kup kto k$1 kmillion k2.
kGeneral ksolicittion kis kok k3. kmust kbe ksold kw/in k12 kmnths k4. ksold kto kany k#
kof kinvestors k(seed kcapital) k5. kresell kis kok
Rule k506 kunder k1933: k- kANS✓✓-1. kPrivate kplacement kof kunlimited kdollar
kamount k2. k35 knon-accredited ksales kto kunlimited kaccredited
Rule k505 kunder k1933: k- kANS✓✓-1. kExempts kissuances kof kup kt
Punitive kDamages k- kANS✓✓-intended kto kreform kor kdeter kthe kdefendant kand
kothers kfrom kengaging kin kconduct ksimilar kto kthat kwhich kformed kthe kbasis kof
kthe klawsuit. kAlthough kthe kpurpose kof kpunitive kdamages kis knot kto
kcompensate kthe kplaintiff, kthe kplaintiff kwill kin kfact kreceive kall kor ksome
kportion kof kthe kpunitive kdamage kaward. kNot kavailable kUCC.
suing kfor kNEGLIGENCE- kMUST kPROVE k4 kTHINGS: kDBCI k- kANS✓✓-dUTY kOF
kCARE, kBREACH k(Lack kof kDue kCare), kCASUALITY kAND kINJURY
Prefrential kTransfer k- kANS✓✓-The ktransfor kof kdebtors kproperty kmade kfro kthe
kbenefit kof ka kcreditor kon kaccount kof kan kantecedent kdebt kwhile kthe kdebtor
kwas kinsolvent. k1 kyr kfor kan kinsider kand k90 kdays kfor kothers.
Chapter k7 k- kANS✓✓-provides kfor kliquidation kof ka kdebtor's kestate. kn ka
kliquidation kproceeding, kafter kthe kpetition kis kfiled, ka ktrustee kwill kbe kappointed
kand kan kautomatic kstay kagainst kcreditor kcollection kproceedings kgoes kinto
keffect.
Chapter k11 k- kANS✓✓-is kfor kdebt kreorganization kand kis kavailable kto kfamily
kfarmers kwith kregular kincome.
Co kInsurance k- kANS✓✓-[FV kof kPolicy k/ k(co-ins. k% kx kFMV kof kProperty)] kLoss
