Sunday, April 28, 2024
Specific Property Gifts

4.8.3 Basic Quiz -- Self-Dealing Issues
Charitable remainder trusts (CRTs) are subject to the self-dealing rules in a manner similar to private foundations.
     True      False
If a partnership or limited liability company (LLC) with an active trade or business wishes to use the lease option, the lessee must be a non-disqualified person.
     True      False
A disqualified person is anyone related to the donor such as a brother, child, niece or nephew.
     True      False
A public charity is never deemed to be a disqualified person.
     True      False
It is permissible for a partnership or an LLC to transfer only a few assets to a CRT and continue to own the remaining assets.
     True      False
An LLC or partnership will use the lease option before transferring assets to a CRT to ensure that the self-dealing rules are not violated.
     True      False
Leasing or renting an asset owned by a CRT to the child of the donor is allowable, so long as the rent paid is at least fair market value.
     True      False
If a donor wishes to sell LLC assets to a disqualified person, then a CRT should not be used.
     True      False
If a CRT is funded with partnership shares or LLC units, no partner or other LLC owner can purchase the shares or units from the CRT.
     True      False
If LLC units or partnership shares are transferred to a CRT, the trustee can sell those units or shares to the donor's brother.
     True      False



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