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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.10 Proprietorships  >  4.10.3 Self-Dealing Solutions  >  Basic Quiz

Basic Quiz - 4.10.3 Self-Dealing Solutions

1. Self-dealing occurs when a private individual transacts business with a charitable remainder trust (CRT).
           
2. A donor cannot purchase a sole proprietorship back from the CRT he or she funded with that asset.
           
3. A donor cannot purchase a sole proprietorship back from a charity to which he or she gave the sole proprietorship.
           
4. CRTs are subject to many of the self-dealing rules that apply to private foundations.
           
5. Public charities are subject to the same self-dealing rules that apply to private foundations.
           
6. A business owner can transfer part of a business to a charitable remainder unitrust (CRUT) and keep part of the business for himself or herself.
           
7. A donor should serve as trustee of a CRT to which he or she contributed part of a sole proprietorship.
           
8. The trustee of a CRT that owns part of a sole proprietorship should have control over 100% of the sole proprietorship.
           
9. If a sole proprietor transfers part of a business to a CRT, he or she will bypass all of the capital gain in the business.
           
10. A donor who wants to sell part of a sole proprietorship and transfer the rest to a CRUT must use a term of years CRUT.