July and August  2019
LACBA MCLE Test

 

Test No. 290:    The 20 Percent Solution

To access the article related to this test, please click here The article will open in a separate window.
  
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 one 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 $25 testing fee ($35 for non-LACBA members) to:

Los Angeles County Bar Association
Attn: Los Angeles Lawyer MCLE Test
P.O. Box 55020
Los Angeles, CA 90055

Make checks payable to Los Angeles County Bar Association.

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-study 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. The Tax Cuts and Jobs Act of 2017* reduced the corporate tax rate to 21 percent only on income above $200,000.


2. Who may take the 20 percent deduction with respect to qualified income earned by a partnership?




3. The 20 percent deduction applies to which of the following:




4. The 20 percent deduction is available for taxable years beginning after December 31, 2017, and before January 1, 2022.


5. To what income does the 20 percent deduction apply?




6. Rental real estate operations automatically constitute a qualified business under I.R.C. Section 199A.


7. At least 250 hours of “rental services” per year must be performed by owners, employees, or agents to satisfy the “real estate rental enterprise” safe harbor.


8. Maintenance of complete and separate books and records is required to have a trade or business if an entity or individual conducts more than one business.


9. Which of the following is included in determining qualified business income?




10. Which of the following potentially may be included in determining qualified business income?




11. A partner of a partnership generally cannot be treated as the partnership’s employee.


12. A partnership may never deduct a guaranteed payment to a partner from qualified business income.


13. Which of the following is true for taxpayers with income exceeding the Phase-In Amount?




14. Which of the following is true for taxpayers with income between the Threshold Amount and the Phase-In Amount?




15. The field of architecture is an SSTB.


16. The income of a pharmacist who sells prescription drugs is considered to be compensation for services in the field of health.


17. Providing landscaping design advice is an SSTB.


18. The 20 percent deduction applies to endorsement income to those earning above the Phase-in Amount.


19. Which of the following industries generally benefits from the alternative test limiting the 20 percent deduction to 25 percent of W-2 wages plus 2.5 percent of the unadjusted basis of qualified property.




20. In order to aggregate two businesses, there must be identical direct or indirect ownership of each business.

 


* General note: The answer to each question assumes that all other requirements of I.R.C. §199A are satisfied.

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 credit by the State Bar of California in the amount of one hour.