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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.5 Inventory  >  4.5.3 Gifts of Inventory  >  Basic Quiz

Basic Quiz - 4.5.3 Gifts of Inventory

1. When inventory is donated to charity, the resulting tax deduction is generally equal to the fair market value of the inventory.
           
2. Gifts of inventory that are for the care of the ill, needy or infants may receive an enhanced deduction.
           
3. Both individuals and corporations can make gifts of inventory for the care of the ill, needy or infants and receive an enhanced deduction.
           
4. A gift of inventory that is for the care of the ill, needy or infants can get favorable treatment only if related to the charity's purpose.
           
5. A gift for the "care of the ill" is any gift that helps a person who is sick and doesn't feel good.
           
6. A "needy person" is a person who lacks the things he or she needs to live (versus the things he or she might want) as a result of poverty or a temporary situation.
           
7. An "infant" is any person under the age of 24 months (2 years).
           
8. A C corporation or individual engaged in a trade or business may claim an enhanced deduction for contributions of "apparently wholesome food."
           
9. C corporations may make "qualified book contributions" and receive an enhanced deduction.
           
10. A C corporation's gift of inventory for the care of the ill to a nonprofit think tank will qualify for a tax deduction that is greater than the cost basis of the inventory.