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CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions  : In CPA Exam syllabubs 60-80% Federal Taxation

  • Federal taxation of individuals
  • Federal taxation of entities
  • Federal taxation of property transactions

This section covers knowledge of federal taxation, ethics and professional responsibilities related to tax practice, and business law, and the skills needed to apply that knowledge.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions  : The Regulation (REG) section of the CPA Exam tests a CPA candidate’s knowledge on federal taxation, business law, business ethics and professional and legal responsibilities. More than 60% of the REG exam focuses on federal taxation.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions : Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. In the United States, the CPA is a license to provide accounting services directly to the public. It is awarded by each of the 50 states for practice in that state. Additionally, almost every state (49 out of 50) has passed mobility laws in order to allow practice in their state by CPAs from other states. Although state licensing requirements vary, the minimum standard requirements include the passing of the Uniform Certified Public Accountant Examination, 150 semester units of college education, and one year of accounting related experience.

Continuing professional education (CPE) is also required to maintain licensure. Individuals who have been awarded the CPA but have lapsed in the fulfilment of the required CPE or have requested to be converted to inactive status are in many states permitted to use the designation “CPA Inactive” or an equivalent phrase. In most U.S. states, only CPAs are legally able to provide to the public attestation (including auditing) opinions on financial statements. Many CPAs are members of the American Institute of Certified Public Accountants and their state CPA society.

State laws vary widely regarding whether a non-CPA is even allowed to use the title accountant. To illustrate, Texas prohibits the use of the designations “accountant” and “auditor” by a person not certified as a Texas CPA, unless that person is a CPA in another state, is a non-resident of Texas, and otherwise meets the requirements for practice in Texas by out-of-state CPA firms and practitioners.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions : REG EXAM CONTENT

10-20% Business Law

  • Contracts
  • Agency
  • Business structure
  • Debtor-creditor relationships
  • Government regulation of business

15-19% Ethics, Professional Responsibilities, and Federal Tax Procedures

  • Ethics and responsibilities in tax practice
  • Licensing and disciplinary systems
  • Federal tax procedures
  • Legal duties and responsibilities

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions : The REG Exam is 4 hours long, though the candidate is not required to use all the allotted time, and consists of 76 Multiple Choice Questions (MCQs) and 8 Task-Based Simulations (TBSs).

Of the 76 MCQs, 64 are operational, meaning they count toward the exam score, while 12 are pretested and do not count toward the exam score. Of the 8 TBSs, 7 are operational and 1 pretested. Other than scoring, there is no functional difference between operational and pretested questions and no sure way for the candidate to tell the difference between an operational and pretested question.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions : The REG Exam is organised into five test lets – two 33-question MCQ test lets followed by a 2-question TBS test let, then an optional 15-minute break that does not count against the 4-hour test time, then two additional TBS test lets of three questions each.The candidate proceeds at his or her own pace through the test lets. Once a test let has been submitted, it cannot be revisited.

The operational MCQs count 50% toward a candidate’s exam score. The operational TBSs count 50% toward a candidate’s exam score.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions : By default the first MCQ test let is of ‘Medium’ difficulty. The difficulty level of the next  MCQ test let depends on the candidate’s performance on the first test let. The candidate will therefore experience one of the following MCQ test let difficulty sequences:

  • Medium – Difficult (candidate performed well on first test let)
  • Medium – Medium (candidate did not perform well on first test let)

Characterising a test let as ‘medium’ or ‘difficult’ refers to the average difficulty of the questions in an MCQ test let. There is not a binary ‘medium’ or ‘difficult’ value assigned to each MCQ. Rather, the difficulty level of each question exists on a numeric scale.

Credit awarded for MCQs is weighted by difficulty level, meaning more credit is awarded for getting a more difficult question correct than for getting a less difficult question correct. Therefore, a candidate with a difficult test let is not penalised for having harder questions, nor is there any advantage in having two Medium test lets.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions  :  It is still possible to pass the exam even with a Medium-Medium MCQ test let sequence. In these cases, good-to-excellent performance on the second MCQ testlet and the TBS test lets is key to passing.

The assigned TBS test lets are pre-selected and have nothing to do with the candidate’s performance on the preceding MCQ test lets, nor do the TBSs within the TBS test let proceed according to performance on the previous TBS.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions :  The Examination consists of four sections:

Auditing and Attestation (AUD)

This section covers knowledge of audits of issuer and non issuer entities, attestation engagements for issuer and non issuer entities, preparation, compilation and review engagements, and the skills needed to apply that knowledge.

Business Environment and Concepts (BEC)

This section covers knowledge of general business environment and business concepts that candidates need to know in order to perform audit, attest, accounting and review services, financial reporting, tax preparation, and other professional responsibilities in their role as certified public accountants, and the skills needed to apply that knowledge.

Financial Accounting and Reporting (FAR)

This section covers knowledge of generally accepted accounting principles for business enterprises (public and nonpublic), not-for-profit entities, and state and local government entities, and the skills needed to apply that knowledge.

Regulation (REG)

This section covers knowledge of federal taxation, ethics and professional responsibilities related to tax practice, and business law, and the skills needed to apply that knowledge.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions  : Eligible candidates have the opportunity to take the Examination at Pro metric test centres in Bahrain, Kuwait, Japan, Lebanon, and the United Arab Emirates (UAE) and Brazil. In order to qualify to take the  Examination outside the U.S., candidates will have to first establish their eligibility through application to a state board participating in the International CPA Examination Administration Program.

For specific instructions on how to apply to take the Examination, please visit the CPA Examination section of the NASBA website.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions  : Qualifying through a board of accountancy is the ONLY route to the U.S. CPA license. There is NO central professional body in the U.S. through which candidates may qualify as CPAs.

The application process is basically the same for U.S. and international candidates alike. Prospective candidates must select the U.S. jurisdiction to which they will apply, contact the Board of Accountancy (or its agent) in that jurisdiction to obtain application materials, submit completed applications and required fees as instructed, and once deemed qualified, schedule the examination. Any special requirements that international applicants must meet (such as arranging for an evaluation of their educational credentials by an agency approved by the board) are explained in accountancy board application instructions.

Prospective candidates who are undecided about the jurisdiction to which they should apply may wish to review the requirements of several Boards of Accountancy before making their decisions.

CPA Regulation REG Federal Taxation of Property Transactions

CPA Regulation REG Federal Taxation of Property Transactions  : Eligible candidates have the opportunity to take the Examination at Pro metric test centres in Bahrain, Kuwait, Japan, Lebanon, and the United Arab Emirates (UAE) and Brazil. In order to qualify to take the  Examination outside the U.S., candidates will have to first establish their eligibility through application to a state board participating in the International CPA Examination Administration Program.

For specific instructions on how to apply to take the Examination, please visit the CPA Examination section of the NASBA

CPA Regulation REG Federal Taxation of Property Transactions

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