June 2019 LACBA MCLE Test and Answer Sheet

 

Test No. 289: MATTERS OF TRUST

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. Under the new tax law, the corporate income tax rate was reduced from a maximum of 37 percent to a flat tax rate of 20 percent.


2. If a business qualifies for the qualified business income deduction under Section 199A of the Internal Revenue Code, the effective federal income tax rate applicable to the business’s pass-through income is 29.6 percent.


3. An individual taxpayer who is married and filing jointly is eligible for the full qualified business income deduction regardless of the type of business in which the taxpayer’s business is engaged if the taxpayer’s aggregate taxable income for the tax year on his or her joint tax return is less than $315,000 and the business is not operated through a C-corporation.


4. An individual who has annual taxable income over $500,000 and does not operate through a C-corporation and whose business is in the field of performing arts is not eligible for the qualified business income deduction with respect to such business.


5. An owner of a partnership that is a qualified business and has amortizable intangible property but does not pay W-2 wages may obtain a qualified business income deduction under Section 199A.


6. An owner of a partnership that is a qualified business and has depreciable tangible property but does not pay W-2 wages may obtain a qualified business income deduction under Section 199A.


7. A C-corporation that operates a business that is not a specific service trade or business is eligible for the qualified business income deduction under Section 199A.


8. An individual owner of a partnership whose annual taxable income is $1 million and whose business’s principal asset is the reputation or skill of such owner qualifies for the qualified business income deduction under Section 199A.


9. An individual owner of an S-corporation whose annual taxable income is $100,000 and whose income is derived from endorsement services qualifies for the qualified business income deduction under Section 199A.


10. Screenwriters who have annual taxable income in excess of $415,000 qualify for the qualified business income deduction under Section 199A.


11. Individual owners of a work-for-hire production company who each have annual taxable income in excess of $415,000 do not qualify for the qualified business income deduction.


12. The owner of a copyright is required to capitalize production costs associated with the creation of such copyright.


13. Absent an election otherwise, an owner of a copyright amortizes the cost of such copyright using the income forecast method.


14. Prior to the new tax law, qualified U.S. film productions were eligible for accelerated cost recovery under the bonus depreciation rules.


15. Under the new tax law, a qualified U.S. production is only eligible for accelerated cost recovery on the first $15 million of production expenses.


16. Under the new tax law, bonus depreciation is taken as and when production costs are incurred.


17. Under the new tax law, net operating losses arising in 2019 may not be carried back to prior tax years.


18. Under the new tax law, net operating losses arising in 2019 may be carried forward indefinitely.


19. An accrual method taxpayer may be eligible to defer advance payments of royalties for one tax year.


20. Under the new tax law, current year losses arising from business operations through a partnership or S-corporation may be limited in use.

 


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.