1. Axel owns an empty building lot that he purchased for $57,000 in 2002. The lot is located next to MSU and is now valued at $145,000. If Axel sells the lot to the MSU Foundation for $87,000, how much, if any, will he be able to claim as a charitable contribution? What, if any, will he have to report as a capital gain?

2. Richie is beginning to implement his estate plan as he gets older (just turned 70, with a 17-year life expectancy). He has chosen to work with the Mayo Clinic Foundation to establish a Charitable Remainder Annuity Trust (CRAT). He will fund the trust with $800,000 worth of Tech-write stock. Richie will receive an annual annuity payment from the trust of $40,000. Assume the current 7520 rate is 4%. What is the charitable deduction Richie may claim?

3. Benjamin owns 60 acres of farm land on the edge of Maple Grove, currently valued at $440,000. He is expecting the land will appreciate significantly in the next 10-15 years as commercial development expands his way. Benjamin is also a staunch supporter of the March of Dimes. As such, he has donated the land to a Charitable Lead Annuity Trust (CLAT) benefiting the March of Dimes. He named his son, Matt, as the remainder beneficiary of the trust. The trust has a term of 12 years and will pay the March of Dimes income generated from the land, $24,000 per year. At the end of 12 years, the trust terminates with proceeds payable to Matt. Assuming the 7520 rate is 2%, will this CLAT create a charitable deduction for Benjamin? Will it create a taxable gift for Matt? What will the remainder value be if the net increase in value averages 13% per year?