GiftLaw Pro, our charitable tax reference service, features detailed information on gift and estate planning strategies. It includes links to relevant Internal Revenue code sections, regulations, rulings, cases and more.

1. Treas. Reg. 1.107A-1(h) says that token benefits may be disregarded for purposes of determining a donor's charitable income tax deduction.

True False

2. The safe-harbor rules for small transfers to donors can be found in the Treasury Regulations.

True False

3. The value of token benefits given to donors without reducing the income tax deduction is indexed for inflation.

True False

4. For administration and recordkeeping reasons, small transfers from charities to donors are exempt from the reporting rules.

True False

5. An example of a token benefit is a $5 keychain that has the name or logo of the charity printed on it.

True False

6. For donors who make larger gifts, the token benefit may be 2% of the donor's gift, subject to a ceiling limit.

True False

7. In valuing a charity's gift to a donor, charity must use the comparative sales method because it is deemed the most accurate.

True False

8. A donor who makes a gift of $10,000 may receive a gift from charity valued at $200 ($10,000 x 2%) without having to report the gift.

True False

9. A charity naming a building after a donor who has made a substantial gift is an example of an impermissible token benefit.

True False

10. Intangible religious benefits need to be properly reported and documented in order to fall within the "token benefit" safe harbor rules.

True False

Basic Quiz - 1.6.2 Gift Premiums