Saturday, April 27, 2024
Specific Property Gifts

4.10.3 Basic Quiz -- Self-Dealing Solutions
Self-dealing occurs when a private individual transacts business with a charitable remainder trust (CRT).
     True      False
A donor cannot purchase a sole proprietorship back from the CRT he or she funded with that asset.
     True      False
A donor cannot purchase a sole proprietorship back from a charity to which he or she gave the sole proprietorship.
     True      False
CRTs are subject to many of the self-dealing rules that apply to private foundations.
     True      False
Public charities are subject to the same self-dealing rules that apply to private foundations.
     True      False
A business owner can transfer part of a business to a charitable remainder unitrust (CRUT) and keep part of the business for himself or herself.
     True      False
A donor should serve as trustee of a CRT to which he or she contributed part of a sole proprietorship.
     True      False
The trustee of a CRT that owns part of a sole proprietorship should have control over 100% of the sole proprietorship.
     True      False
If a sole proprietor transfers part of a business to a CRT, he or she will bypass all of the capital gain in the business.
     True      False
A donor who wants to sell part of a sole proprietorship and transfer the rest to a CRUT must use a term of years CRUT.
     True      False



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