Random Things to Memorize

Question 1

What amount to you need to complete a donor form 8283 for NONCASH ASSETS?

Answer 1

$500 - $5,000

Question 2

What is the amount the donor completes the form 8283 AND the charity completes 8282 for NONCASH ASSETS?

Answer 2

Over $5,000

Question 3

For PUBLICALLY TRADED SECURITIES at what value does a donor complete form 8283?

Answer 3

All but the charity does not sign

Question 4

For NONPUBICIALLY TRADED SECURITIES at what amount does the donor complete the form 8283?

Answer 4

$5,000+ and the charity signs the form 8283

Over $10,000 appraisal needed and attached to form 8283

Question 5

What is required to be on the Form 8283 (donor)?

Answer 5

1. FMV
2. Cost Basis
3. How and when acquired
4. Description of property
5. How valued

Question 6

What is required on form 8282 (charity)?

Answer 6

1. Description
2. How that use is related to its charitable exempt purpose
3. Whether it provided certification to the donor
4. Charity gives the price at which the property was sold

Question 7

Amount for an appraisal for NONCASH Assets?

Answer 7

$5,000

Question 8

Amount when you need an appraisal for NONPUBLICALLY TRADED SECURITIES?

Answer 8

$10,000

Question 9

Value of ART for an appraisal?

Answer 9

$20,000

Question 10

SALT

Answer 10

State and Local Taxes

Total maximum deductible is $10,000

Question 11

Taxpayers can deduct mortgage interest paid on acquisition indebtedness up to ____________?

Answer 11

$750,000

Question 12

Homes purchased before 12/15/17; the maximum amount of acquisition debt is________________?

Answer 12

$1M

Question 13

Standard Deduction for SINGLE person?

Answer 13

$12,400

Question 14

Standard Deduction for MARRIED couple?

Answer 14

$24,800

Question 15

How is Charitable Gift Annuities Taxed?

Answer 15

Basis/Principal

Cap Gains (after out lives life expentancy)

Income - blend (cap gain and income)

Question 16

How are Charitable Remainder Trust Taxed?

Answer 16

1. Income
2. Cap Gain
3. other (tax free)
4. Corpus

Question 17

Long-Term Capital Gains %

Answer 17

0-20%

0% low income

15% normal

20% High income

Question 18

What are collectibles Capital Gains?

Answer 18

28%

Question 19

Does income tax deductions for charitable contributions offset NIIT?

Answer 19

NO

Net Investment Income Tax is 3.8% and applies to: Interest, dividends, payments from rental properties and cap gains from mutual funds

3.8%

Question 20

PEASE Amendment

Answer 20

Prior to 12-31-2017

Reduced itemized deductions by 3% for taxpayers with AGIs exceeding certain thresholds

Raises taxes on high-income tax payers by reducing, then eliminating, the value of their personal exemptions.

2018-2025 it is suspended

Question 21

What is the gift tax annual exclusion?

Answer 21

$15,000 - Individual

$30,000 - Couple

Question 22

What is the Lifetime Exclusion for Taxes?

Answer 22

11.58M during lifetime or at death

Question 23

Carryover basis?

Answer 23

During life

Question 24

Single Premium Immediate Annuity (SPIA)

What can be used to fund this?

Answer 24

Cash only

Question 25

When to consider CLT?

Answer 25

Liquidity Event (selling business) IPO - generates lump sum deduction in year that the shareholder had gain on the stock Benefit younger generations in the future - pass with little or no gift tax Client who want to benefit the charity now

Question 26

Private Foundations are regulated by?

Answer 26

State and Federal government

Question 27

6 Private Foundation Rules (ESREJT) EAT SWEET RICE EACH JAPANESE TIME

Answer 27

1. Excise tax 2. self dealing rules 3. required distributions 4. excess business holdings 5. jeopardy investments 6. taxable expenditures

Question 28

Conduit or Pass-Through Foundation

Answer 28

A Private Foundation that must distribute 100% of net assets each year May pay reasonable admin expenses from assets Receives public tax treatment for income tax purposes

Question 29

What amount do you need an appraisal for life insurance?

Answer 29

$5,000

Question 30

What is Viatical?

Answer 30

Also known as life settlement Sale of in-force policy to a third party Cash in, withdrawal (if policy permits), or loan against policy

Question 31

What is the AGI and % for Conservation easements?

Answer 31

50% AGI Deductible up to 100% 15 Year Carryover Must Be: legally binding Must be Permanent Must restrict the use, modification and development of property like land, natural habitats and historical sites (parks, wetlands, and historic buildings)

Question 32

How is an easement valued for income tax deduction? Determined by a qualified ______________________ based on comparable sales, if any, or by the ________________________ method

Answer 32

Determined by a qualified **_appraisal**_ based on comparable sales, if any, or by the _**subtraction_** method the amount by which the FMV is reduced by the conservation easement (FMV with no restrictions minus the FMV with restrictions)

Question 33

Pooled Income Fund (PIF) deduction is based on the remainder interest computed using the fund's highest income in past __ years?

Answer 33

3 years Provides partial income tax charitable deduction Avoids tax on long-term gain contributions

Question 34

Impact investments are investments made with the intention to generate positive, measureable social and environmental impact alongside a \_\_\_\_\_\_\_\_\_\_\_\_\_\_(via GIIN)

Answer 34

Financial Return. 4 characteristics of Impact investing 1. Intentionality 2. investment, with an expectation of return 3. Range of return expectations and asset classes 4. impact measurement

Question 35

Debt against gifted property can create __________ \_\_\_\_\_\_\_\_\_\_\_\_ to the donor and also create _______________________ to the charity.

Answer 35

Debt against gifted property can create **_taxable income**_ to the donor and also create _**unrelated business income tax (UBIT)_** to the charity.

Question 36

What is the tool in assignment 10 - The Hurleys?

Answer 36

Discovery/Agreement Memo AKA Talking Points Memo

Question 37

What is NGO Source?

Answer 37

Project of the Council on Foundations and TechSoup which helps grant makers streamline and save their international giving. (centralizing, streamlining, and standardizing the ED process for US grant makers)

Question 38

Philanthropy Protection Act of 1995

Answer 38

stipulates that the charity offering a gift annuity will provide a disclosure statement to all annuitants in a Gift Annuity Fund and also provide the same to all prospective donors at the time of solicitation, using a letter or pamphlet format. If the charitable organization commingles investment assets, it must provide a disclosure statement to all annuitants in a Gift Annuity Fund and also provide the same to all prospective donors at the time of solicitation, using a letter or pamphlet format. The Act also prohibits the payment of commissions or other remuneration to anyone based on the value of a charitable gift annuity.