Skip to main content

Wiley CPAexcel Exam Review 2018 Study Guide: Regulation

Wiley CPAexcel Exam Review 2018 Study Guide: Regulation


ISBN: 978-1-119-48109-6

Dec 2017

528 pages


Product not available for purchase


The Wiley CPAexcel Study Guide: Regulation provides detailed study text to help you identify, focus on, and master specific topic areas that are essential for passing the REG section of the 2018 CPA Exam.


  • Covers the complete AICPA content blueprint in Regulation (REG)
  • Authored and compiled by the same leading university accounting professors who author the Wiley CPAexcel online course
  • Explains every CPA Exam topic tested on the Regulation (REG) section of the CPA Exam (one volume)
  • Organized in Bite-Sized Lessons so you can learn faster and remember more of what you learn
  • Updated for 2018 so you have the most accurate, up-to-date content available for the  Regulation (REG) section on this year’s exam
  • Maps perfectly to the Wiley CPAexcel Review Course; may be used to complement the online course or as a standalone study tool
  • Study text only and does NOT include practice questions or practice exams. Use in conjunction with the Wiley CPAexcel Exam Review 2018 Test Bank: Regulation, which includes over 4,200 interactive multiple-choice questions and 200 task-based simulations.

About the Authors viii

About the Regulation Professors ix

Welcome to Regulation x

Ethics, Professional Responsibilities, and Federal Tax Procedures 1

Ethics and Responsibility in Tax Practice 2

Regulations Governing Practice before the IRS 2

IRC Code and Regulations Related to Tax Return Preparers 7

Licensing and Disciplinary Systems 12

Federal Tax Practice and Procedures 15

Substantiation and Disclosure of Tax Positions 15

Taxpayer Penalties 18

Sources of Tax Authority and Research 23

Tax Practice and Procedure 27

Compliance Responsibilities 30

Legal Duties and Responsibilities 35

Common Law Duties and Liabilities to Clients and Third Parties 35

Privileged Communications, Confidentiality, and Privacy Acts 44

Business Law 49

Agency 50

Types of Agency Relationships and Creation 50

Authority of Agents and Principals 53

Duties of Agents and Principals 55

Contract Liability of Agents and Principals 60

Tort Liability of Agents and Principals 63

Contracts 67

Introduction and Classification 67

Applicable Laws 67

Types of Contracts 70

Formation 73

Offer and Acceptance 73

Consideration 81

Writing and Records: The Statute of Frauds 86

Defenses to Formation 92

Performance 98

Defining Performance and Breach 98

Discharge of Performance 104

Passage of Title and Risk of Loss 108

Remedies 115

Types of Remedies 115

Formulas for Damages 118

Third-Party Rights 122

Debtor-Creditor Relationships 127

Rights, Duties, and Liabilities of Debtors, Creditors, and Guarantors 127

Suretyship—Introduction, Creation, and Types 127

Suretyship—Rights of Parties 131

Article 9—UCC Secured Transactions 136

Introduction and Creation of Security Interests 136

Perfection of Security Interests 139

Priorities in Security Interests 144

Rights of Secured Parties and Debtors 148

Bankruptcy and Insolvency 151

Prebankruptcy Options, and Introduction to and Declaration of Bankruptcy 151

Bankruptcy Process 157

Distribution of Debtor’s Estate 161

Discharge and Reaffirmation Agreements 164

Government Regulation of Business 166

Federal Securities Regulation 166

Defining a “Security” 166

The Registration Process 168

Exempt Transactions and Securities 171

The JOBS Act of 2012 177

Liability Provisions—1933 Act 181

Purposes, Requirements, and Provisions of the 1934 Act 187

Criminal Liability 194

Other Federal Laws and Regulations 196

Employment Tax 196

Affordable Care Act 201

Worker Classification Laws and Regulations 209

Business Structure 215

Selection and Formation of Business Entity and Related Operation and Termination 215

Selection of a Business Entity 215

Formation 221

Operations: Nonfinancial Factors 223

Financial Structure 226

Termination 232

Rights, Duties, Legal Obligations, and Authority of Owners and Management 235

Rights and Duties 235

Authority of Owners and Managers 240

Federal Taxation 243

Introduction to Tax Review 244

Property Transactions 251

Sales and Dispositions of Assets 251

Capital Gains and Losses 255

Section 1231 Assets 263

Section 1231 Assets—Cost Recovery 268

Like-Kind Exchanges and Involuntary Conversions 279

Other Nonrecognition Transactions 285

Federal Taxation of Individuals 291

Income 292

Gross Income—General Concepts and Interest 292

Gross Income—Other Inclusions 297

Gross Income—Exclusions 300

Taxation of Income from Business Entities 303

Accounting Methods and Periods—Individuals 307

Taxation of Employee Benefits 314

Taxation of Retirement Plans 320

Deductions 325

Deductions—Basic Principles 325

Deductions for AGI 327

Itemized Deductions—Medical, Taxes, Interest 331

Itemized Deductions—Other 335

Employee Business Expenses 341

Deductions—Losses and Bad Debts 344

Limitations on Business Deductions 346

Individual Tax Issues 351

Personal and Dependency Exemptions 351

Filing Status 355

Alternative Minimum Tax and Other Taxes 359

Tax Planning Strategies for Individuals 364

Tax Credits 369

Personal Tax Credits 369

Estate and Gift Taxation 378

Federal Gift Tax 378

Federal Estate Tax 385

Federal Taxation of Entities 393

Corporate Taxation 394

Formation of a Corporation 394

Corporate Income 399

Accounting Methods and Periods—Corporations 404

Special Corporate Deductions 407

Corporate Alternative Minimum Tax 413

Penalty Taxes 417

Taxation of Related Corporations 421

Distributions from a Corporation 424

Corporate Redemptions and Liquidations 428

Corporate Reorganizations 434

Multijurisdictional Tax Issues 440

State and Local Taxation 440

Taxation of Foreign Income 445

Tax-Exempt Entities 450

Tax-Exempt Organizations 450

Partnership Taxation 453

Formation and Basis 453

Flow-Through of Income and Losses 460

Transactions with Partners 463

Partnership Distributions 466

Sales and Terminations 471

S Corporation Taxation 475

Eligibility, Election, Termination 475

Income and Basis 478

Distributions and Special Taxes 483

Fiduciary Taxation 486

Income Taxation of Fiduciaries 486

Tax Credits 491

Business Tax Credits 491

Other Tax Issues 495

Tax Planning Strategies for Business Entities 495

Business Entity Choice 497

Index 501