Saturday, May 4, 2024
Gift Administration

8.2.3 Basic Quiz -- Forms 5227
When a charitable remainder trust (CRT) sells appreciated property, the trust must pay capital gains tax.
     True      False
If a CRT earns income from a business unrelated to the exempt purpose of the trust, the CRT may be subject to taxation.
     True      False
Because CRTs are tax-exempt, the trustee does not need to file a tax return.
     True      False
Form 5227 is the federal tax form for split-interest trusts.
     True      False
A trustee of a CRT must file all required tax forms by April 25.
     True      False
If additional time is needed to file Form 5227, a trustee will be granted an additional three months to file.
     True      False
Form 1041 is the income tax return for charitable remainder trusts.
     True      False
A trustee may petition the IRS for a return of excise taxes paid.
     True      False
Schedule K-1 of Form 1041 is to be sent to the charitable remainderman every year.
     True      False
After an automatic extension to file the appropriate forms, an additional six-month extension is also given automatically upon request.
     True      False



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