4.7.1 Basic Quiz -- Value of Real Estate Gifts

Real estate is usually transferred using a beneficiary designation form.

True False

A gift of real estate is complete for tax purposes once the donor irrevocably promises to make the gift.

True False

A prearranged sale is a good strategy because it removes the uncertainty involved with the charity's sale of the contributed real estate.

True False

There is a prearranged sale when - because of a donor's actions - charity is legally bound to sell the donated real estate to a third party.

True False

There may be a prearranged sale problem if the donor has signed a contract of sale with respect to the real estate prior to the contribution to charity.

True False

A donor's letter of intent to sell is a classic example of a prearranged sale problem.

True False

If a donor has capital gain attributable to straight-line depreciation, it is subject to tax at the long-term capital gains rate.

True False

A gift of real estate requires a qualified appraisal if the value exceeds $5,000.

True False

A donor must file Form 8282 if the contributed property is subsequently sold by the charity.

True False

The valuation of real estate must take into account many relevant factors such as comparable sales, zoning requirements and easements.