4.1.3 Basic Quiz -- Related or Unrelated Use Gifts of Art

In order for property to qualify as a related use gift, a charity must use the property in a manner similar to the way in which the donor used it.

True False

A gift of appreciated artwork that qualifies as a related use asset will be subject to the more favorable 50% of adjusted gross income limitation.

True False

If artwork is deemed to be an unrelated use asset, then the donor loses the customary five-year excess charitable deduction carry forward.

True False

All gifts of related use property will qualify for a deduction at the property's fair market value.

True False

If an unrelated use property is transferred to charity, a fair market value deduction may still be allowed if the charity sells the property and uses the proceeds to fund its exempt purposes.

True False

In order to qualify as related use property, it must be proven that the charity actually used the property for two years after the date of the gift.

True False

There is a recapture of tax benefits if the charity disposes of related use tangible personal property within three years of the gift.

True False

A gift of tangible personal property always produces a deduction equal to the property's cost basis.

True False

Examples of tangible personal property include yachts, cars, sculptures and paintings.

True False

A donor must file Form 8282 if the contributed property is subsequently sold by the charity.