Tax Rules for Charitable Contribution Deductions (00100145, 2011)

The two CPE Credit course focuses on some of the tax rules for charitable contributions. We will discuss rules set to run only a limited period of time and also about the rules for substantiating donations. Woven throughout are new developments and discussions about what may be on the horizon when it comes to charitable contribution deductions.
Final Exam > Results Page

final exam score:

final exam status:

90%

Question 1

 Correct

A C corporation’s deduction for charitable contributions is limited to:

(You Answered) (Correct Answer) 10 percent of taxable income

30 percent of taxable income

50 percent of taxable income

20 percent of taxable income

Question 2

 Correct

For 2011, the enhanced donation deduction for a conservation easement by someone who is not a farmer or rancher is limited to what percentage of a formula (which is essentially AGI)?

30 percent

(You Answered) (Correct Answer) 50 percent

100 percent

10 percent

Question 3

 Correct

A taxpayer donates $400 in cash via payroll deductions. Which of the following is acceptable substantiation?

A taxpayer’s diary

(You Answered) (Correct Answer) Pay stub, Form W-2, or other documentation from the employer showing the amount withheld

A canceled check

Form 8283

Question 4

 Incorrect

A taxpayer makes three gifts to the same charity of $350 each. For substantiation purposes:

(You Answered) Each gift must have a separate written acknowledgment.

All gifts must be substantiated by a single written acknowledgment.

(Correct Answer) The taxpayer can obtain either separate acknowledgments for each donation or a single acknowledgment covering all the donations.

The gifts do not require substantiation by written acknowledgment.

Question 5

 Correct

In order to deduct clothing and household items without an appraisal, what condition must they be in?

(You Answered) (Correct Answer) Good used condition or better

Any condition; this merely affects valuation

Excellent used condition or better

Not in good used condition

Question 6

 Correct

A taxpayer donates property with a fair market value of $6,000. What substantiation is required?

A written acknowledgment from the charity

A statement by the taxpayer about the manner in which the property was acquired, the date it was acquired, and its cost basis

A qualified appraisal

(You Answered) (Correct Answer) All of the above

Question 7

 Correct

Assume a property donation of $7,500. Which type of property is exempt from the Appraisal Summary in Section B of Form 8283?

A painting

(You Answered) (Correct Answer) Non-publicly traded stock

A sculpture

Historical memorabilia

Question 8

 Correct

Which statement concerning donations of intellectual property is correct?

They are exempt from substantiation rules.

There is no special filing requirement for the charity.

(You Answered) (Correct Answer) The taxpayer must obtain a statement that the charity intends to treat the donation as a contribution of qualified intellectual property for charitable purposes.

Contributions of qualified intellectual property do not entitle the taxpayer to additional deductions.

Question 9

 Correct

A contribution for a donated vehicle valued by the taxpayer at $600 but sold by the charity for $400 or less is:

(You Answered) (Correct Answer) $400

$500

$600

$350

Question 10

 Correct

The Administration wants to:

Increase the AGI percentage for deductions of charitable contributions

(You Answered) (Correct Answer) Cap deductions for contributions for high-income taxpayers at 28 percent (along with other itemized deductions)

Leave the rules for charitable contributions unchanged

Increase tax credits for high-income taxpayers charitable contributions