Friday, May 3, 2024
Specific Property Gifts

4.14.4 Basic Quiz -- Option Grant Strategy
Charitable remainder trusts may own S corporation stock.
     True      False
The "option grant strategy" is a way to use S corporations to produce more income for their owners.
     True      False
When an S corporation shareholder grants a charity an option to buy S corporation stock, he may immediately deduct the value of that option.
     True      False
The option grant strategy was once used by a number of attorneys.
     True      False
All S corporation income is unrelated business income ("UBI") when received by a charity.
     True      False
The goal of the "option grant strategy" is to "give" S corporation stock to charity without the charity ever actually owning the stock.
     True      False
The IRS approves of the option grant strategy.
     True      False
Generally, only aggressive taxpayers use the option grant strategy.
     True      False
A private letter ruling is binding authority.
     True      False
The Tax Court can overrule a decision by the IRS.
     True      False



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