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GiftLaw Pro Home   >  Chapter 2 - Major/Current Gifts  >  2.2 Gift/Sale  >  2.2.1 Gift/Sale of Land  >  Basic Quiz

Basic Quiz - 2.2.1 Gift/Sale of Land

1. In a gift and sale, it is permissible for the donor to have a binding sales agreement with a buyer before the property is gifted to the charity.
           
2. Before accepting property, a charity should check to see if there is debt on the property, whether there is a good title and if there are any environmental considerations.
           
3. When a donor gifts an undivided interest in property to a charity, he or she must prorate the basis between the part retained and the gift to charity.
           
4. If a donor wishes to give a divided interest in real property, he or she must first create a separate title for that property in order to receive a charitable deduction.
           
5. When a donor gives to charity less than a 50% interest in property, the IRS may require a minority discount to be taken on the charitable deduction.
           
6. In a gift and sale of real property, the donor actually transfers an individual interest in the property to the charity by deed.
           
7. By choosing a gift and sale, a donor may be able to sell the property without paying any capital gains tax.
           
8. After a gift of part of a property, the joint sale by the charity and donor is easier if the buyer is negotiating with only one party, typically the charity.
           
9. The charitable deduction from a gift of appreciated property is usable by the donor up to 30% of his or her adjusted gross income.
           
10. If prior accelerated deprecation was taken on the real property used in a gift and sale, the charitable deduction will be reduced.