The upcoming changes in the Regulation (REG) section of the CPA exam, brought about by the 2017 Tax Cuts and Jobs Act (TCJA), are poised to reshape the examination landscape, particularly for candidates sitting for the exam from January 2019 onward. If you're gearing up to tackle the REG section in 2019, it's imperative to comprehend the intricacies of these changes and understand how Vishal has proactively adapted its content to ensure candidates are well-prepared for this segment of the exam.
Understanding the Regulatory Changes
The modifications induced by the TCJA predominantly affect three key areas within the Regulation section, each associated with specific groups:
- Area III – Federal Taxation of Property Transactions (12-22% of REG):
- Group B – Cost Recovery (depreciation, depletion, and amortization)
- Area IV – Federal Taxation of Individuals (15-25% of REG):
- Group C – Adjustments and deductions to arrive at adjusted gross income and taxable income
- Group F – Filing status and exemptions
- Area V – Federal Taxation of Entities (28-38% of REG):
- Group C – C Corporations
- Group E – Partnerships
Vishal's Proactive Strategy
Vishal has proactively approached these changes, ensuring candidates are not only aware of the modifications but also well-prepared to tackle the revised content. Here's a comprehensive look at how Vishal is addressing the 2019 REG changes:
Digital Transition for Timely Updates
At a strategic level, Vishal has transitioned tax forms from traditional physical textbooks to its software infrastructure. This shift serves multiple purposes, the foremost being more timely updates to the study material. Additionally, the digital platform facilitates video walkthroughs, enhancing the learning experience for candidates.
Rate and Amount Updates
Recognizing the critical importance of staying current with tax rates and indexed amounts, Vishal has undertaken a thorough review and update of all indexed numbers. This meticulous approach ensures that candidates are practicing with the most up-to-date information, aligning their preparation with the regulatory landscape as influenced by the TCJA.
Detailed Revisions to Vishal's Regulation Review Sections
Vishal's adaptation strategy involves a meticulous examination of each section within the Regulation review, incorporating the requisite changes mandated by the TCJA:
REG 1 & 2: Individual Taxation
- Elimination of personal exemptions
- Increased standard deduction amounts
- Changes in tax brackets and tax rates
- Elimination of miscellaneous (in excess of 2% AGI) deductions
- Entertainment expenses no longer deductible
- Changes to alimony deduction and inclusion
- Elimination of domestic production activities deduction
- Moving expenses only deductible for military moves
- Home equity loan interest is no longer deductible
- Changes to child tax credit
- Additional excess business loss limitation
- Introduction of Section 199A Qualified Business Income (QBI) deduction for pass-through entities
REG 3: Property Taxation
- Changes to qualifying property for like-kind exchanges
- Changes to carryback and carryforward rules for net operating losses
REG 4: Corporate Taxation
- Elimination of corporate AMT
- Elimination of domestic production activities deduction
- Entertainment expenses no longer deductible
- Changes to carryback and carryforward rules for net operating losses
- Introduction of a new corporate flat tax rate of 21 percent
REG 5: Flow-through Entity Taxation and Multi-jurisdictional Tax Issues
- Introduction of Section 199A Qualified Business Income (QBI) deduction for pass-through entities
- Additional excess business loss limitation
- Elimination of technical termination of a partnership
- Addition of a new module on international tax issues covering BEAT, FDII, GILTI, and more
REG 6: Other Entity Taxation
- Introduction of a new lifetime combined exclusion for gifts and estates
REG 7 & 8: Business Law
- Elimination of individual penalties for failure to comply with the Affordable Care Act
Commence Your Preparation Now with Vishal
Candidates planning to take the Regulation Exam in 2019 are strongly advised to initiate their preparation promptly. Vishal has diligently updated its study materials to reflect the changes stemming from the Tax Cuts and Jobs Act. To jump-start your exam preparation and leverage Vishal's comprehensive resources, visit the dedicated web page designed to guide you through the intricacies of the REG section.
Vishal's proactive and strategic adaptation to the 2019 REG changes not only ensures that candidates are cognizant of the alterations but also equips them with the knowledge and resources needed to excel in this critical section of the CPA exam. Embark on your journey to CPA success with Vishal, where staying ahead of regulatory changes is an integral part of the learning experience. Don't wait—start preparing now for a successful performance in the Regulation Exam.