Monday, May 6, 2024
Deferred Gifts

3.7.4 Basic Quiz -- Income, Gift and Estate Tax
The donor who owns her home outright may receive a charitable income tax deduction for the transfer of a remainder interest in a personal residence.
     True      False
With a life estate reserved, the depreciation of the personal residence must be taken into account when computing the income tax deduction for the remainder interest.
     True      False
When possible, the appraiser will determine the allocation between the land and the building value for purposes of calculating the charitable deduction.
     True      False
A gift of a remainder interest in a personal residence, farm or ranch qualifies for the gift tax charitable deduction.
     True      False
If a life estate arrangement is created for the donor and another person, the transfer may be subject to gift tax.
     True      False
A gift tax deduction is not provided for a gift of a remainder interest in a personal residence or farm.
     True      False
If a donor includes a life estate in his/her will for a surviving spouse, the personal residence or farm will not be taxable in the donor's estate.
     True      False
If a donor creates a life estate arrangement at death for the benefit of someone other than the surviving spouse, the entire value of the personal residence or farm will be subject to estate tax.
     True      False
Because depreciation is not taken into account for gift and estate tax charitable deduction purposes, the entire value of the personal residence or farm should be allocated to the land when running the calculation.
     True      False
A gift of a remainder interest in a home or farm is permitted only for those donors over age 35.
     True      False



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