Saturday, May 4, 2024
Charitable Deduction Methods

6.3.2 Basic Quiz -- Deferred Gift Annuity
A current gift annuity and a deferred gift annuity funded with the same amount will not produce the same charitable deduction.
     True      False
The charitable deduction for a deferred gift annuity is adjusted for the deferral period.
     True      False
The annuity starting date is defined as one period after the funding date.
     True      False
The annuity funding date is used to determine the exclusion ratio.
     True      False
The highest AFR is preferable for an annuitant who desires greater tax-free payments.
     True      False
Life expectancies for deferred gift annuities are determined by referring to the IRS mortality tables.
     True      False
If an annuity is funded with appreciated stock, the payments will consist of capital gain, tax-free return of basis, and ordinary income.
     True      False
Jared creates a one-life deferred gift annuity. Jared receives a portion of each payment tax-free for the term of years he is expected to live. Jared is extremely healthy and has lived past his life expectancy. Jared's payments will continue to contain a tax-free element.
     True      False
Until the end of the term or the death of the annuitant, a portion of each annuity payment is a return of principal.
     True      False
Deferred annuities produce a charitable deduction usable up to 50% of the donor's adjusted gross income (AGI).
     True      False



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