Skip to Main Content
GiftLaw Pro
Charitable Giving & Tax Information Service
Back to Gift Planning Website
GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.2 C Corporations  >  4.2.3 Stock Sale with Unitrust  >  Basic Quiz

Basic Quiz - 4.2.3 Stock Sale with Unitrust

1. If the donor transfers corporate stock into a CRT after entering into a binding agreement with a seller, the donor will bypass capital gain on the stock.
           
2. If a donor transfers stock to a charitable remainder trust after the corporation has entered into a Letter of Intent to sell the corporation, the donor will not bypass capital gains.
           
3. If a shareholder transfers stock before the shareholders' vote there will never be a prearranged sale.
           
4. If a transfer of stock to a charitable remainder trust has been determined to be a prearranged sale, it will disqualify the trust.
           
5. If a charitable remainder trust is desired to avoid capital gains tax on the sale of closely held corporation and negotiations have already commenced, it is best to use a third-party trustee for the CRT.
           
6. When selling a corporation using a CRT, it is a good idea to structure the trust as a FLIP trust.
           
7. After transferring corporate stock to a charitable remainder trust where negotiations of a sale have already begun, it is best to wait four to eight weeks before the trustee sells the stock.
           
8. The charitable deduction resulting from the transfer of appreciated stock is deductible up to 30% of the donor's adjusted gross income.
           
9. If a charitable deduction cannot be used up in one year, it can be carried over and used for five additional years.
           
10. When a charitable remainder trust is funded with corporate stock, both the unitrust amount and the charitable deduction are calculated based upon the sale price of the stock.