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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.14 Subchapter S Corporations  >  4.14.5 Asset Sale Strategy  >  Basic Quiz

Basic Quiz - 4.14.5 Asset Sale Strategy

1. Charitable remainder trusts may own S corporation stock.
           
2. An S corporation itself may create a charitable remainder trust.
           
3. An S corporation's charitable deductions "pass through" to its shareholders.
           
4. An S corporation may contribute all of its assets to a charitable remainder trust with no tax due and payable.
           
5. A charitable remainder trust funded with S corporation assets must be for a term of one to 20 years.
           
6. If an S corporation contributes assets to a charitable remainder trust, it must exercise care to ensure that those assets don't generate active trade or business income that will be UBI to the trust.
           
7. An S corporation shareholder may use 100% of any deduction that the S corporation "passes through" to him or her.
           
8. To avoid UBI, an S corporation may lease its assets to a third party prior to contributing those assets to charity or a charitable remainder trust.
           
9. If an S corporation contributes its assets to a charitable remainder trust, it can later purchase the assets back from the charitable remainder trust for their fair market value.
           
10. A charitable remainder trust may own liquid or illiquid assets.