January 2016 LACBA MCLE Test and Answer Sheet

Test No. 253: Homes away from Home

To access the article related to this test, please click here.
  
Instructions for Obtaining MCLE Credit

The Los Angeles County Bar Association certifies that this activity has been approved for Minimum Continuing Legal Education credit by the State Bar of California in the amount of 1 hour. To apply for credit, please follow the instructions.

1. Study the CLE article.

2. Answer the test questions by marking the appropriate boxes. Each question has only one answer.

3. Photocopies of this answer sheet may be submitted; however, this form should not be enlarged or reduced. Mail the answer sheet and the $20 testing fee ($25 for non-LACBA members) to:

Los Angeles Lawyer
MCLE Test
P.O. Box 55020
Los Angeles, CA 90055

Make checks payable to Los Angeles Lawyer.

4. You can also fill in the test form and submit it directly to LACBA by clicking "Submit." To submit your test answers online you will need to pay by credit card. After submitting your answers you will be presented with a screen requesting payment information. This information will be submitted in a secure mode which will allow you to safely transmit your credit card number over the Internet. If you prefer not to pay by credit card, please print this answer sheet and submit your responses by regular mail.

5. Within six weeks, Los Angeles Lawyer will return your test with the correct answers, a rationale for the correct answers, and a certificate verifying the CLE credit you earned through this self-assessment activity.

6. For future reference, please retain the CLE test materials returned to you.


 

Test Sheet
 



  
Mark your answers to the test by clicking next to your choice.  All questions must be answered.  Each question has only one answer. This test is worth 1 hour of credit.*

1. U.S. residents are taxed only on income they earn in the United States.


2. Green card holders are U.S. tax residents.


3. It is possible to be treated as a U.S. tax resident by being physically present in the United States.


4. Withholding under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) is 10 percent of the gain on the sale of a U.S. real property interest.


5. There is no estate tax imposed on nonresident aliens.


6. A transfer of real property to a spouse does not result in a reassessment of real property for California property tax purposes.


7. California real property held directly by a nonresident alien is subject to the U.S. estate tax.


8. A California LLC that is treated as a disregarded entity for federal tax purposes does not have to pay the $800 minimum tax on LLCs in California.


9. The parent-child exclusion from property tax change in ownership is not available for transfers of interests in LLCs disregarded for income tax purposes.


10. The interspousal exclusion from property tax change in ownership is not available for transfers of entity interests.


11. Stock in a foreign corporation is not a U.S. situs asset for purposes of the U.S. estate tax.


12. FIRPTA withholding does not apply to any sale of stock of a U.S. corporation.


13. The estate tax applies to the stock in a foreign corporation that is owned by a nonresident alien (NRA) if the foreign corporation owns U.S. real property.


14. Married couples can elect to treat an LLC as a disregarded entity for federal income tax purposes.


15. California real estate owned by a foreign individual directly is not subject to the estate tax.


16. California does not impose a withholding tax on the sale of California real property by an NRA.


17. Dividends from a U.S. corporation to a foreign corporation are generally subject to a 30 percent withholding tax.


18. California property tax is based on the fair market value of the real property at the time of purchase.


19. NRAs are eligible for preferential long-term federal capital gain rates on the sale of U.S. real estate.


20. NRAs are not subject to federal income tax on the sale of U.S. real estate.

 


Before clicking the Submit button, please verify that all questions have been answered. An error message will appear if not all questions are answered.

* The Los Angeles County Bar Association has been approved as a continuing legal education provider of Minimum Continuing Legal Education credit by the State Bar of California. This self-assessment activity will qualify for Minimum Continuing Legal Education legal ethics credit by the State Bar of California in the amount of one hour.