Friday, May 3, 2024
Specific Property Gifts

4.10.2 Basic Quiz -- Lease and Debt Solutions
An operating sole proprietorship may be transferred to a charitable remainder trust.
     True      False
Unrelated business income (UBI) is any income generated by an active trade or business that is not substantially related to a charity's tax-exempt purpose.
     True      False
A charity that usually does not pay income tax is required to pay tax on its UBI.
     True      False
A charitable remainder trust (CRT) will not lose its tax-exempt status if it has UBI.
     True      False
Lease payments that are dependent upon business earnings and profits are UBI when received by a charity.
     True      False
Lease payments that are fixed and not dependent upon business earnings and profits are UBI when received by a charity.
     True      False
Income generated by a mortgaged asset is generally UBI.
     True      False
A charitable remainder trust may generally own mortgaged property.
     True      False
There are many strategies for removing debt from property before giving the property to charity.
     True      False
Non-recourse debt is a loan that is secured by some sort of collateral, usually property.
     True      False



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