4.2.4 Basic Quiz -- Assets to Charity or CRT

It is rare to find a profitable C corporation with significant liquid assets.

True False

C corporations are subject to a 30% AGI limitation for gifts of appreciated property and a 50% AGI limitation for gifts of cash.

True False

A C corporation is not allowed to make direct gifts to a donor advised fund (DAF) or to a supporting organization (SO).

True False

A C corporation may transfer a business asset into a CRT for the benefit of one of its officers, founders or shareholders.

True False

Since a C corporation has an unlimited life span, a charitable remainder trust can be written to last indefinitely.

True False

By using a charitable remainder trust, a C corporation may bypass capital gains tax and the individual capital gain rate that would otherwise apply to the sale of the asset.

True False

Once a C corporation creates a CRT, the shareholders should terminate the C corporation and will then receive the CRT from the corporation without paying tax.

True False

In order for an officer, founder or shareholder to benefit from a C corporation's CRT, an individual would need to receive a salary or other form of compensation from the corporation.

True False

If 20% or more of a C corporation's income is in the form of dividends, interest, royalties and other types of passive income, the corporation may be deemed a personal holding company.

True False

A person may avoid all layers of corporate and shareholder tax if he or she transfers all of the corporate assets to charity or a charitable remainder trust.