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1. A bargain sale is the sale of an asset to charity for less than the asset's fair market value.

True False

2. A donor who creates a charitable gift annuity receives a tax deduction for the full fair market value of the transferred asset.

True False

3. If a donor passes away prior to his or her estimated life expectancy, the annuity terminates and the donor's estate may receive a tax deduction.

True False

4. The deduction for unrecovered basis in the property is subject to the 2% floor for itemized deductions.

True False

5. If an annuitant is not the donor who created the annuity, his or her estate may not claim a deduction for any unrecovered basis.

True False

6. A deduction for unrecovered basis is taken on a two-life charitable gift annuity when the first annuitant passes away.

True False

7. To claim a deduction for unrecovered basis, line 27 on Schedule A is to be used.

True False

8. An unrecovered basis deduction is a charitable deduction.

True False

9. A deduction for unrecovered basis should be claimed on the deceased's final gift tax return.

True False

10. In order to claim a deduction for unrecovered basis, the donor's itemized deductions must meet or exceed 2% of the donor's adjusted gross income.

True False

Basic Quiz - 8.1.4 Unrecovered Basis