Tuesday, May 7, 2024
Deferred Gifts

3.4.1 Basic Quiz -- Appreciated Property Annuities
A gift annuity is a contract between a donor and a charity.
     True      False
If a donor uses appreciated property to fund a gift annuity for himself and another person who is not his spouse, usually the donor will report ordinary income and capital gain, while the second person will report ordinary income and tax-free payout.
     True      False
A donor cannot fund a gift annuity with ordinary income assets.
     True      False
If a gift annuity is funded with an ordinary income asset, the deduction will be reduced.
     True      False
If a gift annuity is funded with an ordinary income asset, the payouts must be based on the donor's basis in the asset, not the fair market value.
     True      False
When a gift annuity is funded solely for another person, the donor is allowed to spread out the capital gain over the other person's life expectancy.
     True      False
If a donor does not have any basis in stock used to fund a gift annuity, there will not be any tax-free income.
     True      False
With a gift annuity funded with an appreciated asset, the donor may completely bypass the capital gain.
     True      False
The older the annuitant, the more tax-free income he or she will receive over his or her life expectancy.
     True      False
If a donor funds a gift annuity with appreciated property, then the gain associated with the charitable portion will be completely bypassed.
     True      False



© Copyright 1999-2024 Crescendo Interactive, Inc.