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GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.6 Substantiation of Gifts  >  1.6.4 Property Gifts  >  Basic Quiz

Basic Quiz - 1.6.4 Property Gifts

1. The value of an item for charitable deduction purposes is determined by what the donor thinks the property is worth.
           
2. Any person with bookkeeping skills can value a family business.
           
3. The valuation of real estate should take into account factors such as zoning requirements and comparable sales.
           
4. In choosing an appraiser, donors must select one certified as a Member of the Appraisal Institute (MAI) or by another nationally recognized organization for appraisers.
           
5. A gift of property may be reduced in value if environmental problems are present.
           
6. The overvaluation by donors of gifts of art to charities is a frequent audit item of the Internal Revenue Service.
           
7. Examples of tangible personal property include yachts, Ferraris, sculptures, stamp collections and paintings.
           
8. To ensure a correct and proper valuation, an appraisal must be made at the time of the gift.
           
9. A donor must file Form 8282 if the contributed property is subsequently sold by the charity.
           
10. A gift of tangible personal property always produces a deduction equal to the property's cost basis.