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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.3 Crops and Tangible Personalty  >  4.3.4 Tangible Personal Property Valuation  >  Basic Quiz

Basic Quiz - 4.3.4 Tangible Personal Property Valuation

1. The value of an item of tangible personal property for charitable deduction purposes is determined by what the donor thinks it is worth.
           
2. The IRS and Congress perceive the overvaluation by donors of gifts of tangible personal property as a significant problem.
           
3. All charitable gifts of tangible personal property must be appraised.
           
4. For gifts of tangible personal property over $500, a donor must keep records showing when he or she acquired the property and its cost basis.
           
5. A donor may not claim a deduction for a fractional interest gift of tangible personal property.
           
6. If a donor gives a fractional undivided interest in tangible personal property, his or her charitable deduction may be reduced for lack of marketability and control.
           
7. If the IRS determines that a donor has overstated a charitable deduction, it can impose a 20% penalty, which is the maximum penalty allowed by law.
           
8. To ensure a correct and proper valuation, an appraisal (when required) must be made before the gift.
           
9. When computing the charitable deduction for a tangible personal property gift into a CRT, the Applicable Federal Rate for the contribution month or the prior two months must always be used.
           
10. An appraiser who values a gift of tangible personal property must be specifically qualified to appraise tangible personal property.