Sunday, May 5, 2024
Gift Administration

8.1.4 Basic Quiz -- Unrecovered Basis
A bargain sale is the sale of an asset to charity for less than the asset's fair market value.
     True      False
A donor who creates a charitable gift annuity receives a tax deduction for the full fair market value of the transferred asset.
     True      False
If a donor passes away prior to his or her estimated life expectancy, the annuity terminates and the donor's estate may receive a tax deduction.
     True      False
The deduction for unrecovered basis in the property is subject to the 2% floor for itemized deductions.
     True      False
If an annuitant is not the donor who created the annuity, his or her estate may not claim a deduction for any unrecovered basis.
     True      False
A deduction for unrecovered basis is taken on a two-life charitable gift annuity when the first annuitant passes away.
     True      False
To claim a deduction for unrecovered basis, line 27 on Schedule A is to be used.
     True      False
An unrecovered basis deduction is a charitable deduction.
     True      False
A deduction for unrecovered basis should be claimed on the deceased's final gift tax return.
     True      False
In order to claim a deduction for unrecovered basis, the donor's itemized deductions must meet or exceed 2% of the donor's adjusted gross income.
     True      False



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