CPA REG: Individual gross income and pass-through items
Blueprint IV.A, IV.B · Area IV, Federal Taxation of Individuals · 22–32% of REG
Ten REG questions on individual gross income and pass-through items, untimed, with a reason for every answer option.
Or take the full REG mock examIn 2024, Kim bought 2 units of a cryptocurrency for $10,000 in total and held them as an investment. In 2026, she used one unit, then worth $9,000, to buy a used car. What is the tax result for 2026?
Individual gross income and pass-through items on CPA REG
Area IV of REG (22–32%) is federal taxation of individuals. This topic covers gross income inclusions and exclusions, including digital assets, and reporting items from partnerships and S corporations.
- Blueprint groups
- IV.A, IV.B
- Share of the section
- Area IV, Federal Taxation of Individuals: 22–32%
- Our drill
- 10 questions from 12 on this topic, untimed, with a reason for every option; one free attempt, unlimited with a pass
What to know
- Alimony under divorce instruments executed after 2018 is neither deductible nor taxable.
- Life insurance death benefits, gifts and inheritances, workers' compensation and physical injury damages are excluded; prizes, jury pay and unemployment benefits are taxable.
- Scholarships are excluded only for tuition, fees and required books, supplies and equipment; room and board is taxable (IRC §117).
- Up to 85% of Social Security benefits can be taxable (IRC §86).
- Exchanging a digital asset for property is a taxable disposition; gain is capital if the asset is held as an investment.
- Partners and S corporation shareholders report their share of entity income whether or not it is distributed (IRC §§702, 1366).
Test yourself on individual gross income and pass-through items
Ten REG questions on individual gross income and pass-through items, untimed, with a reason for every answer option.
Or take the full REG mock examCommon questions
How much of the REG section is individual gross income and pass-through items?
It sits in Blueprint Area IV (IV.A, IV.B). The AICPA weights whole areas, not single topics; see the area’s range on the REG page. Our 72-question mock draws each area at the middle of its range.
Are these real REG questions?
No. The AICPA does not release live exam questions. These are original practice questions written to the published 2027 CPA Exam Blueprints, with a reason for every answer option and the standard or code section behind the key.
More REG topics
- Tax practice ethics and federal tax proceduresdrill
- Business law: agency, contracts, debtor-creditor, federal law and business structuresdrill
- Basis, cost recovery and property transactionsdrill
- Individual deductions, loss limits, filing status and creditsdrill
- Book-tax differences and C corporationsdrill
- S corporations, partnerships, LLCs and exempt organizationsdrill
REG full mock exam: 4 hours, 5 testletsREG task-based simulations
Blueprint and exam facts checked November 2026: AICPA: Learn what is tested on the CPA Exam (Blueprints effective January 1, 2027) · AICPA: CPA Exam score release and testing windows · NASBA: CPA Exam FAQ · Virginia Board of Accountancy: CPA Exam fees.
Original independent practice questions written to the AICPA CPA Exam Blueprints. Not affiliated with or endorsed by the AICPA or NASBA.