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GiftLaw Pro Home   >  Chapter 8 - Gift Administration  >  8.2 Charitable Remainder Trusts  >  8.2.3 Forms 5227  >  Basic Quiz

Basic Quiz - 8.2.3 Forms 5227

1. When a charitable remainder trust (CRT) sells appreciated property, the trust must pay capital gains tax.
           
2. If a CRT earns income from a business unrelated to the exempt purpose of the trust, the CRT may be subject to taxation.
           
3. Because CRTs are tax-exempt, the trustee does not need to file a tax return.
           
4. Form 5227 is the federal tax form for split-interest trusts.
           
5. A trustee of a CRT must file all required tax forms by April 25.
           
6. If additional time is needed to file Form 5227, a trustee will be granted an additional three months to file.
           
7. Form 1041 is the income tax return for charitable remainder trusts.
           
8. A trustee may petition the IRS for a return of excise taxes paid.
           
9. Schedule K-1 of Form 1041 is to be sent to the charitable remainderman every year.
           
10. After an automatic extension to file the appropriate forms, an additional six-month extension is also given automatically upon request.