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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.2 C Corporations  >  4.2.4 Assets to Charity or CRT  >  Basic Quiz

Basic Quiz - 4.2.4 Assets to Charity or CRT

1. It is rare to find a profitable C corporation with significant liquid assets.
           
2. C corporations are subject to a 30% AGI limitation for gifts of appreciated property and a 50% AGI limitation for gifts of cash.
           
3. A C corporation is not allowed to make direct gifts to a donor advised fund (DAF) or to a supporting organization (SO).
           
4. A C corporation may transfer a business asset into a CRT for the benefit of one of its officers, founders or shareholders.
           
5. Since a C corporation has an unlimited life span, a charitable remainder trust can be written to last indefinitely.
           
6. By using a charitable remainder trust, a C corporation may bypass capital gains tax and the individual capital gain rate that would otherwise apply to the sale of the asset.
           
7. Once a C corporation creates a CRT, the shareholders should terminate the C corporation and will then receive the CRT from the corporation without paying tax.
           
8. In order for an officer, founder or shareholder to benefit from a C corporation's CRT, an individual would need to receive a salary or other form of compensation from the corporation.
           
9. If 20% or more of a C corporation's income is in the form of dividends, interest, royalties and other types of passive income, the corporation may be deemed a personal holding company.
           
10. A person may avoid all layers of corporate and shareholder tax if he or she transfers all of the corporate assets to charity or a charitable remainder trust.