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GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.1 Income Tax Deductions  >  1.1.4 Gift Reduction Rules  >  Basic Quiz

Basic Quiz - 1.1.4 Gift Reduction Rules

1. Gifts of cash are subject to the reduction rules under Sec. 170.
           
2. The value of an item for charitable deduction purposes is determined by what the donor thinks the property is worth.
           
3. Gifts of inventory are usually limited to cost basis.
           
4. A gift of short-term capital gain property is deductible at cost basis.
           
5. In general, a gift of long-term capital gain real property to a private foundation is deductible at fair market value.
           
6. A gift of tangible personal property always produces a deduction equal to the property's cost basis.
           
7. Examples of tangible personal property include yachts, cars, sculptures and paintings.
           
8. Depreciation recapture on certain items can reduce a donor's charitable deduction.
           
9. A lawyer who offers his or her services to a charity for free is allowed a charitable deduction for the fair market value of his or her time.
           
10. A donor who allows charity the free use valuable art is entitled to a deduction for the fair market rental value of those items.