Free CPA REG (Taxation & Regulation) Formula and Limits Sheet (2026)

Every CPA REG formula you need on the test, grouped by topic, rendered with full math notation. 23 formulas across 4 topics, calibrated to the 2026 syllabus. Free forever, no signup required.

23 Items
4 Topics
2026 Syllabus
Free Forever
Print-ready PDF: 1080x1350 portrait, math pre-rendered, fonts embedded. Download once, study anywhere.
Download PDF →

All CPA REG Formulas

Ethics, Professional Responsibilities and Federal Tax Procedures 1 item
Estimated tax safe harbor (underpayment penalty avoidance)
No penalty if tax paid via withholding + estimated payments ≥\geq the lesser of:
90% of current year tax, OR
100% of prior year tax (110% if prior year AGI > $150,000).
Payments due: April 15, June 15, Sept 15, Jan 15.
Federal Taxation of Property Transactions 6 items
§1231, §1245, and §1250 recapture
§1231: net gains → LTCG; net losses → ordinary.
§1245: all depreciation on personal property recaptured as ordinary.
§1250: only depreciation above SL on realty recaptured (25% rate for unrecaptured §1250 gain).
Like-kind exchange: gain recognized and new basis
Gain Recog=min⁡(Realized Gain,  Boot Received)\text{Gain Recog} = \min(\text{Realized Gain},\; \text{Boot Received})
New Basis=Old Basis+Boot Paid−Boot Recd+Gain Recog\text{New Basis} = \text{Old Basis} + \text{Boot Paid} - \text{Boot Recd} + \text{Gain Recog}
Real property only post-TCJA (§1031).
Gift basis and inherited basis
Gift: donee takes donor's adjusted basis (carryover basis) + gift tax attributable to appreciation.
If FMV < donor's basis at gift date: basis for loss is FMV; basis for gain is donor's basis.
Inherited: basis = FMV at date of death (stepped-up or stepped-down).
MACRS recovery periods
3-year: certain small tools, racehorses.
5-year: computers, autos, light trucks.
7-year: office furniture, equipment (most personal property).
15-year: land improvements, qualified improvements.
27.5-year: residential rental real property.
39-year: nonresidential real property.
Home sale exclusion §121
Exclude up to $250,000 ($500,000 MFJ) of gain on sale of principal residence.
Requirements: owned and used as principal residence 2 of last 5 years (ownership and use tests).
Cannot use exclusion more than once every 2 years.
§1231 lookback rule
Net §1231 gains treated as ordinary income (not capital gain) to the extent of unrecaptured net §1231 losses from the prior 5 years.
Lookback period: 5 years. Prevents taxpayers from converting ordinary losses into capital gains.
Federal Taxation of Individuals 5 items
Individual income tax formula
Gross Income
−Above-the-line deductions (for AGI)- \text{Above-the-line deductions (for AGI)}
= Adjusted Gross Income (AGI)
−Standard or Itemized Deduction- \text{Standard or Itemized Deduction}
−QBI Deduction (§199A)- \text{QBI Deduction (§199A)}
= Taxable Income
×Tax Rate\times \text{Tax Rate}
−Credits- \text{Credits}
= Tax Liability
2026 standard deductions
Single: $16,100
Married Filing Jointly (MFJ): $32,200
Head of Household (HoH): $24,150
Married Filing Separately (MFS): $16,100
Additional for age ≥65\geq 65 or blind: $1,650 (MFJ/MFS); $2,050 (Single/HoH).
Long-term capital gain rates (2026)
0% rate: taxable income ≤$49,450\leq \$49,450 (Single) / $98,900 (MFJ)
15% rate: up to $545,500 (Single) / $613,700 (MFJ)
20% rate: above thresholds.
NIIT (3.8%) added for high earners on net investment income.
AMT formula (individual) and exemptions (2026)
Regular TI + preferences/adjustments = AMTI
−- Exemption = AMT base
×26%\times 26\% (≤\leq$244,500) or 28%28\% (above) = TMT
2026 exemptions: Single $90,100 (PO $500k); MFJ $140,200 (PO $1M). OBBBA flat thresholds.
Net investment income tax (NIIT)
NIIT=3.8%×min⁡(Net Investment Income,  MAGI−Threshold)\text{NIIT} = 3.8\% \times \min(\text{Net Investment Income},\; \text{MAGI} - \text{Threshold})
Thresholds: Single $200,000; MFJ $250,000; MFS $125,000.
NII includes dividends, interest, rents, royalties, passive activity income, capital gains.
Federal Taxation of Entities 5 items
Qualified business income (QBI) deduction §199A
QBI Ded=min⁡(20%⋅QBI,  20%⋅(TI−Net Cap Gains))\text{QBI Ded} = \min(20\% \cdot QBI,\; 20\% \cdot (TI - \text{Net Cap Gains}))
High earners capped at 50%⋅W-250\% \cdot W\text{-}2 or 25%⋅W-2+2.5%⋅UB25\% \cdot W\text{-}2 + 2.5\% \cdot \text{UB}. SSTBs lose deduction above thresholds.
Partnership: outside basis calculation
Outside Basis=Cash Contributed+Adjusted Basis of Property Contributed+Share of Partnership Liabilities+Allocated Income−Allocated Losses−Distributions\text{Outside Basis} = \text{Cash Contributed} + \text{Adjusted Basis of Property Contributed} + \text{Share of Partnership Liabilities} + \text{Allocated Income} - \text{Allocated Losses} - \text{Distributions}
Cannot go below zero.
S-corporation shareholder basis
Beginning Basis
+ Separately/non-separately stated income
−- Distributions (tax-free up to basis)
−- Losses/deductions (limited to basis)
Basis ≥\geq 0; excess losses suspended.
Corporate tax rate and dividends-received deduction (DRD)
Flat 21% corporate income tax rate (TCJA, permanent post-OBBBA).
DRD: 50% if < 20% ownership; 65% if ≥\geq 20% but < 80%; 100% if ≥\geq 80% (affiliated group).
DRD limited to applicable % of taxable income (before DRD) unless creates/increases NOL.
Self-employment tax
SE Tax=15.3%×92.35%×Net SE Income\text{SE Tax} = 15.3\% \times 92.35\% \times \text{Net SE Income}
(12.4% Social Security on earnings ≤$176,100\leq \$176,100 + 2.9% Medicare on all earnings + 0.9% Additional Medicare on earnings > $200k/$250k)
Deduct 50% of SE tax as above-the-line adjustment.

CPA REG Limits and Thresholds

Federal Taxation of Entities 6 items
Post-OBBBA, the SALT itemized deduction cap is $40,000 for MFJ, phasing down above $500,000 MAGI.
For tax year 2026, the standard deduction is $32,200 MFJ, $24,150 HOH, and $16,100 single.
The Child Tax Credit is $2,200 per qualifying child, with $1,700 refundable as the ACTC.
The 2026 unified lifetime estate and gift exemption is $15M per individual, with a top rate of 40%.
The 2026 401(k) elective deferral limit is $24,500; total §415(c) additions are capped at $72,000.
A Qualified Charitable Distribution from an IRA is capped at $111,000 per year once the owner is at least age 70½.

Frequently Asked Questions

Is the CPA REG formula sheet free?
Yes. The full CPA REG formula sheet is free, with no signup, no email, and no credit card required. 23 formulas across 4 topics, all rendered with the same KaTeX math notation used in the FreeFellow study app.
Can I download the CPA REG formula sheet as a printable PDF?
Yes. A 1080x1350 portrait PDF (Instagram and LinkedIn carousel native size, also great for tablet study) is linked at the top of this page. The PDF is fully self-contained: math is pre-rendered, fonts are embedded, no internet connection needed once downloaded.
What's covered on the CPA REG formula sheet?
Every formula is grouped by official syllabus topic, with the formula in math notation plus a one-line note on when to use it (or a watch-out from CAIA, CFA, or other prep-provider commentary). Coverage is calibrated to the 2026 syllabus and refreshed when the corpus changes.
Is this formula sheet affiliated with CPA?
No. FreeFellow is not affiliated with the CPA or any examination body. This is an independent study aid covering the published syllabus.
What else is free at FreeFellow for CPA REG candidates?
The full question bank with detailed solutions, mixed practice, readiness tracking, lessons (where available), and the formula sheet are all free forever. Fellow ($59/quarter or $149/year per track) unlocks timed mock exams, spaced-repetition flashcards, performance analytics, AI essay grading, and a personalized study plan.
Practice CPA REG questions free →

Formula sheets for other exams

Exam P Exam FM Exam FAM Exam SRM Exam ALTAM Exam ASTAM CFA Level I CFA Level II CFA L3 Portfolio Mgmt CFA L3 Private Wealth CFA L3 Private Markets CFP

About FreeFellow

FreeFellow is an AI-native exam prep platform for actuarial (SOA & CAS), CFA, CFP, CPA, CAIA, and securities licensing candidates — built around modern AI as a core capability rather than as a bolt-on. Every lesson ships with AI-narrated audio. Every constructed-response item has a copy-to-AI prompt builder so candidates can paste their answer into their own ChatGPT or Claude for self-graded feedback. Fellow members get instant AI grading on essays against the official rubric (currently CFA Level III, expanding to other essay-bearing sections).

The 70% you need to pass — question bank, written solutions, lessons, formula sheet, mixed practice, readiness tracking — is free forever, with no trial period and no credit card. Become a Fellow ($59/quarter or $149/year per track) to unlock mock exams, flashcards with spaced repetition, performance analytics, AI essay grading, and a personalized study plan.