1.A taxpayer may deduct certain amounts contributed to qualified charitable organizations in the form of cash, property, or certain partial interests in property. (True/False).

2.An exempt organization is a charitable organization that qualifies to receive charitable contributions that are deductible for income tax purposes. (True/False).

3.Outright gifts can only consist of cash contributions to charity. (True/False).

4.A disadvantage of charitable deductions is that they are included in the estate and subject to estate tax. (True/False).

5.If a charity is the beneficiary of a life insurance policy, the donor may receive significant tax advantages depending on how the gift is structured.(True/False).

6.All of the following organizations are 60% deduction limit charities, EXCEPT:

a.a medical research organization associated with a hospital

b.a governmental unit

c.certain private foundations

d.veterans' groups

7.John and Lisa went to a charity dinner-dance. They paid $450 for the tickets. The fair market value of the tickets was $150. All proceeds from the event go directly to this qualified charity. The allowable charitable contribution on their federal tax return should be:

a.$150

b.$225

c.$300

d.$450

8.Jeffrey is a recently divorced businessman who had a sole proprietorship. In 2015, he inherited an office building upon the death of his mother, Mary. Last year Jeffrey decided to donate the building to a qualified charity. This transfer was not made in trust. Regarding this transaction:

a.Jeffrey is allowed a deduction for his contribution

b.only 20% of the fair market value of the gift may be allowed as a deduction

c.it is not an allowable deduction since it cannot be considered to be a contribution of an undivided portion of Jeffrey's entire interest in the property

d.both a and b

9.Robert died in 2018 with a gross estate of $7.5 million dollars. A charitable bequest in the amount of $1,500,000 was made. As a result of the bequest, Miguel's estate for estate tax purposes:

a.was reduced by 60% of the bequest amount

b.remained at $7.5 million as a bequest cannot reduce the estate

c.was lowered by the amount of the bequest

d.was first reduced by $1,000,000 before add-ins from the cost basis of assets adjusted for the final deduction to the gross estate

10.A charitable remainder annuity trust (CRAT) is characterized by which of the following?

I.provides a fixed payment, at least annually, to a noncharitable beneficiary

II.is a revocable remainder trust that turns irrevocable, to be paid to or held for the charity

III.the value of any remainder interest must be at least 10% of the initial net fair market value (FMV) of all property placed in the trust

IV.the donor can contribute to the trust at inception and up to 36 months after its creation

a.I and III

b.I and IV

c.I and II

d.II, III, and IV