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GiftLaw Pro Home   >  Chapter 6 - Charitable Deduction Methods  >  6.3 Gift Annuities  >  6.3.1 Current Gift Annuity  >  Basic Quiz

Basic Quiz - 6.3.1 Current Gift Annuity

1. When a donor contributes an asset to charity in exchange for a gift annuity, the full value of the asset is considered a gift to charity.
           
2. A charitable gift annuity is similar to a bargain sale to charity
           
3. The Applicable Federal Rate is used to help determine the amount of the donor's deduction for funding a charitable gift annuity.
           
4. The age of the annuitant affects the amount of the charitable deduction the donor will receive.
           
5. To determine the amount of each annuity payment, the annuitant's age is multiplied by the payment frequency.
           
6. The annuity factor for a single life can be found in IRS Publication 1500.
           
7. An adjustment must be made to the annuity factor if the frequency of the annuity payments is anything other than annual.
           
8. The exclusion ratio demonstrates the amount of each annuity payment that will not be taxed as ordinary income.
           
9. The total amount of the tax-free payments an annuitant will receive can be calculated.
           
10. If a gift annuity is funded with cash, a portion of each annuity payment will be taxed as capital gain.