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1. Inventory may be transferred to a charitable remainder trust.

True False

2. When a donor transfers inventory to a charitable remainder trust, he or she is able to claim a tax deduction as of the date of the transfer.

True False

3. When a donor transfers inventory to a charitable remainder trust, the gift is valued on the date of the transfer.

True False

4. Inventory contributed to a charitable remainder trust is deductible at fair market value only if it has a "related use" to the trust's charitable purposes.

True False

5. A significant benefit of giving inventory to a charitable remainder trust is bypass of gain.

True False

6. Charitable remainder trusts use the four-tier accounting system to determine the tax character of distributions from the trust.

True False

7. When inventory is donated directly to charity, rather than to a charitable remainder trust, the resulting tax deduction is generally equal to the fair market value of the inventory.

True False

8. Inventory is property that a person or business entity owns for sale to customers in the ordinary course of trade or business.

True False

9. Only a term of years charitable remainder trust may receive a gift of inventory.

True False

10. A charitable remainder annuity trust may not receive inventory.

True False

Basic Quiz - 4.5.4 The Inventory Unitrust