CPA REG: S corporations, partnerships, LLCs and exempt organizations
Blueprint V.C–V.F · Area V, Federal Taxation of Entities · 23–33% of REG
Ten REG questions on s corporations, partnerships, llcs and exempt organizations, untimed, with a reason for every answer option.
Or take the full REG mock examHow are guaranteed payments to a partner for services treated?
S corporations, partnerships, LLCs and exempt organizations on CPA REG
The rest of Area V covers S corporations, partnerships, LLCs and tax-exempt organizations: formation, basis, distributions, eligibility and unrelated business income.
- Blueprint groups
- V.C–V.F
- Share of the section
- Area V, Federal Taxation of Entities: 23–33%
- 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
- Contributions of property to a partnership are tax-free; the partner's basis equals the property's basis, adjusted for liabilities shifted (IRC §§721, 722, 752).
- Guaranteed payments are deductible by the partnership and ordinary income to the partner (IRC §707(c)).
- Cash distributions in excess of a partner's outside basis produce gain (IRC §731).
- S corporations may have up to 100 eligible shareholders and one class of stock; partnerships, corporations and nonresident aliens cannot be shareholders (IRC §1361).
- S corporation shareholder losses are limited to stock basis plus debt basis; later income restores debt basis first (IRC §§1366, 1367).
- Exempt organizations pay tax on unrelated business taxable income from a regularly carried on trade or business not substantially related to the exempt purpose (IRC §§511–513).
Test yourself on s corporations, partnerships, llcs and exempt organizations
Ten REG questions on s corporations, partnerships, llcs and exempt organizations, untimed, with a reason for every answer option.
Or take the full REG mock examCommon questions
How much of the REG section is s corporations, partnerships, llcs and exempt organizations?
It sits in Blueprint Area V (V.C–V.F). 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 gross income and pass-through itemsdrill
- Individual deductions, loss limits, filing status and creditsdrill
- Book-tax differences and C corporationsdrill
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.