4.1.4 Basic Quiz -- Art to Charitable Remainder Trusts

Because art is tangible personal property, it may not be transferred into a charitable remainder trust ("CRT").

True False

In general, artwork is an excellent asset for a charitable remainder annuity trust ("CRAT").

True False

If art is transferred into a FLIP unitrust, the FLIP trigger event could be the sale of the artwork.

True False

Under the intervening interest rule, if a charitable deduction is not allowed in the year of contribution, the donor will never be entitled to a charitable deduction with respect to that transfer.

True False

It is possible to have an asset qualify as a related use property even though it is being transferred into a charitable remainder trust.

True False

Although the donor may not retain use of artwork contributed to a CRT, the donor may allow family members to use the artwork until the CRT sells the property.

True False

When computing the charitable deduction for a tangible personal property gift into a CRT, the Applicable Federal Rate ("AFR") for the contribution month or the prior two months must always be used.

True False

Artwork that is created by the donor should not be transferred into a charitable remainder trust.

True False

Gifts of artwork to CRTs are deductible up to 50% of AGI.

True False

It is not permissible for the donor to direct the trustee of the CRT to sell the contributed artwork to a certain person or entity.