ANSWER
FOLLOWING
TIPS ONTHE
TIPS
– Answer eachQUESTIONS
statement with “True” or “False.”
Respond
to each“TIPS”
of thestands
following
statements
with “True”
or “False.”
1. The acronym
for Treasury
Investor
11. The
Fed’s stated target inflation rate is 5 percent.
Protection Securities. TRUE
OR factors
FALSE The
Brunzell
are mandatory and must be
considered in every award of attorney fees.
2. TIPS are currently very popular with investors due
to their inflation protection feature.
TRUE OR FALSE
2. The Brunzell factors must be reflected within the
3. written
An investment
in TIPS
is always
preferable to an
order granting
attorney
fees.
investment in a regular (non-inflation-protected)
Treasury security. TRUE OR FALSE 1.
inflation
usednot
to determine
the final
3.4. AThe
written
orderindex
that does
state the basis
for
value
of
TIPS
may
not
match
up
with
the
actual
which attorney fees are granted is always void.
inflation experienced by the investor.
TRUE OR FALSE 4.5. IfThe
the annual
Beattie/Yamaha
factors
by the
interest rate
paidare
onweighed
recent issuances
district
court,
but
not
reflected
within
the
written
of TIPS is near zero. TRUE OR FALSE order granting attorney fees, the Supreme Court is
6. permitted
TIPS canto
sometimes
less to
than
theirthe
face
value.
review thecost
record
affirm
award
of
TRUE
OR
FALSE fees on the basis of these factors.
7. TIPS can sometimes cost more than their face value.
TRUE OR FALSE
5. Orders denying a request for attorney fees must
8. The cost of a TIPS depends primarily on investors’
always provide a reason for the denial.
expectation of future inflation. TRUE OR FALSE 9. Recent TIPS auctions have sold at unusually large
discounts
their
faceapplicable
value.
6. The
Yamahafrom
factor
is only
when the offer
TRUE
OR
FALSE of judgment is the basis for the award of attorney
and the defendant
is theexpect
prevailing
offeror. rate
10.fees
An investor
in TIPS should
an inflation
of at least 2.5 percent. TRUE OR FALSE TRUE OR FALSE
7. A district court’s consideration of the Beattie/
12. A
TIPS investor
can
be liable for
anorders
annual income
Yamaha
factors is
mandatory
in all
tax
on
any
annual
increase
in
the
TIPS
value due
granting attorney fees.
to the inflation index even when the investor has
not received any money from the TIPS investment. TRUE OR FALSE 8. When there are multiple possible legal grounds
for offset
an award
of or
attorney
fees,
a district
court of
13. To
some
all of the
annual
tax liability
when
it doesand
not deduct
state a the
aabuses
TIPS, its
an discretion
investor can
amortize
basis for an
of attorney
premium
thataward
was paid
for the fees.
TIPS.
TRUE OR FALSE 14. The IRS has provided a TIPS premium
9. A district court judge always has the discretion to
amortization procedure that is readily adaptable
determine the reasonableness of the amount of
to actual TIPS purchases. TRUE OR FALSE requested attorney fees.
15. Premium amortization affects the amount of
capital gain or loss at TIPS maturity.
FALSE court considers
the Beattie/
10. TRUE
When a OR
district
Yamaha factors for an award of attorney fees
16. All
TIPSupon
investors
should
amortize the
anydistrict
TIPS
based
an offer
of judgment,
OR FALSE premiums
paid. TRUE
court is excused
from considering
the Brunzell
factors.
17. All things considered, a TIPS investment can still
be a desirable investment. TRUE OR FALSE
18. So long as held to maturity, an investment in a
TIPS will not result in a loss. TRUE OR FALSE
19. TIPS are best suited for tax-free or tax-deferred
accounts. TRUE OR FALSE
CERTIFICATION: This self-study activity has been approved for one hour of continuing legal education credit by the Nevada Board of Continuing Legal Education.
THREE EASY STEPS TO CLE CREDIT – $45
TEST 29 TIPS ON TIPS
1) Read the article on pages 16-17
2) Answer the quiz questions above. Each question has only one correct answer.
14-16
3) Mail completed form and a $45 processing fee to: STATE BAR OF NEVADA
Make checks payable to
the State Bar of Nevada.
P.O. BOX 50
LAS VEGAS, NV 89125-0500
or fax to: (702) 463-5730
Name
Law Firm/Organization
Address
State/ZIP
NV Bar Number (Required)
 Check Enclosed OR Please bill my:
Card #:
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 MC
 AMEX
 DISCOVER
Exp:
Signature:
Articles for CLE credit are valid up to the end of the third calendar year after publication
Articles
for CLE
credit
are valid
up the
to the
end of
the thirdwhichever
calendar year
after publication
or until
a rule
change
renders
article
outdated,
is comes
rst.
or until a rule change renders the article outdated, whichever is comes first.
{ Test 29}
Test 23
1 HOUR CLE CREDIT
1 HOUR CLE CREDIT