Monday, May 6, 2024
Charitable Deduction Methods

6.3.1 Basic Quiz -- Current Gift Annuity
When a donor contributes an asset to charity in exchange for a gift annuity, the full value of the asset is considered a gift to charity.
     True      False
A charitable gift annuity is similar to a bargain sale to charity
     True      False
The Applicable Federal Rate is used to help determine the amount of the donor's deduction for funding a charitable gift annuity.
     True      False
The age of the annuitant affects the amount of the charitable deduction the donor will receive.
     True      False
To determine the amount of each annuity payment, the annuitant's age is multiplied by the payment frequency.
     True      False
The annuity factor for a single life can be found in IRS Publication 1500.
     True      False
An adjustment must be made to the annuity factor if the frequency of the annuity payments is anything other than annual.
     True      False
The exclusion ratio demonstrates the amount of each annuity payment that will not be taxed as ordinary income.
     True      False
The total amount of the tax-free payments an annuitant will receive can be calculated.
     True      False
If a gift annuity is funded with cash, a portion of each annuity payment will be taxed as capital gain.
     True      False



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