2.3.1 Basic Quiz -- Gift of Appreciated Property

When a donor gifts real property to a charity, the transfer is completed when the donor gives the charity a deed to the property.

True False

When a donor gifts appreciated real property to a charitable organization, he or she bypasses any capital gains tax on that property and receives a charitable deduction that may offset other taxable income.

True False

It is permissible for a donor to have a binding agreement to sell a piece of property, then gift the property to charity and bypass the capital gain.

True False

Before accepting a real property gift, the charity should check to see if the donor has good title to the property and whether there are any environmental concerns with the property.

True False

When a donor gifts real property subject to accelerated depreciation, the donor does not have to pay tax on the accelerated depreciation and the donor receives a deduction for the fair market value of the property.

True False

With appreciated stock gifts the limitation on the deduction is 50% of adjusted gross income.

True False

If a donor wishes to mail the actual certificates of stock to charity, it is necessary to obtain a stock power and have it signed at the financial services firm.

True False

Most stock gifts to charity are transferred directly from the financial services firm to the charity's own brokerage account.

True False

For all gifts of appreciated property to charity, other than publicly-traded stock, where the donor claims a deduction greater than $5,000, the donor must obtain an appraisal of the gifted property.

True False

When making a gift of appreciated property, the donor may use the charitable deduction to offset taxable income up to 30% of his or her adjusted gross income (AGI).