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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.14 Subchapter S Corporations  >  4.14.8 Self-Dealing Issues  >  Basic Quiz

Basic Quiz - 4.14.8 Self-Dealing Issues

1. Self-dealing occurs when a private individual transacts business with a charitable remainder trust.
           
2. An S corporation cannot purchase its assets back from the charitable remainder trust to which the S corporation gave the assets.
           
3. An S corporation cannot purchase assets back from a charity to which the S corporation gave the assets.
           
4. Charitable remainder trusts are subject to the same 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. An S corporation can transfer part of its assets to a charitable remainder trust and retain ownership of the rest of its assets.
           
7. Any person who owns more than 20% of an S corporation is a disqualified person with respect to a CRT created by that S corporation.
           
8. It does not matter who leases assets from an S Corporation prior to the S corporation contributing those assets to a charitable remainder trust.
           
9. An S corporation that contributes some of its assets to a CRT can sell its remaining assets to a third party who purchases the CRT assets as well.
           
10. An owner of an S corporation that creates a CRT should not serve as trustee of that CRT.