Sunday, April 28, 2024
Specific Property Gifts

4.5.5 Basic Quiz -- Investor or Dealer
Only a corporation can have inventory.
     True      False
A person can have inventory even if he or she doesn't have a business.
     True      False
A donor's deduction for a donation of inventory is limited to the cost basis of the inventory.
     True      False
A donor who acts like a business owner with respect to his or her property is classified as an investor.
     True      False
An investor recognizes capital gain, not ordinary income, on the sale of assets.
     True      False
A dealer recognizes capital gain, not ordinary income, on the sale of assets.
     True      False
Facts and circumstances determine whether a donor is a dealer or investor.
     True      False
Once a donor is classified as an investor, he or she will remain an investor with respect to the property.
     True      False
A dealer may deduct only the cost basis of property donated to charity.
     True      False
An investor may deduct only the cost basis of property donated to charity.
     True      False



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