Answers to Real Estate Test

If you landed on this page, that means you just took our 25 questions test!

Learn this stuff well. Fundraisers who really understand gifts of real estate are in the top of their careers. Real estate constitutes about 50% of this nation’s wealth. And Gifts of Real Estate are an integral giving vehicle many charities avoid or are scared to take.

Gifts of Real Estate are very well covered in The Planned Giving Bible™. You can also assess whether your board is ready for such type of gifts. Time to educate them!

Donating appreciated real estate to charity — or accepting real estate if you’re a charity — is one of those things that’s tricky to generalize about but critical to understand. That’s why you need professionals like Chase Magnuson and Dennis Haber to help facilitate the gift. A first step would be to get their book: Real Estate Donations: 47 Critical Questions.

Answers

1) Why is it important to calculate basis?

C) To determine the gift deduction

2) What counts as dealer property?

D) Both “b” and “c”

3) What percentage of AGI may an individual use of their charitable gift donations?

B) 30%

4) What percentage of corporate income may be offset by a charitable gift deduction?

A) 10%

5) Which of the following may be donated and receive a gift deduction?

D) All of the above

6) What is the IRS designation for a public charity?

C)  501 (c) 3

7) Donors may split their donations among how many charities.

D) All of the above

8) Donation of a personal residence may use the statutory deduction as well as the gift donation.

A) True

9) International properties qualify as gift donations.

A) True

10) Realtors are normally paid fees by the charity

A) True

11) Who must obtain a qualified appraisal to receive the benefit from a gift donation?

C) Donor

12) The donation of installment notes will avoid capital gains tax.

B) False

13) Debt encumbered property may be donated.

A) True

14) A simultaneous closing may be used to transfer ownership of a donated property.

A) True

15) Because real estate donations represent such a small niche market, Realtors shouldn’t waste their time developing expertise in this field.

B) False

16) How many charities are they’re in the United States?

D) 1,600,000

These real estate donations qualify for a charitable gift deduction:

17) Farms/ranches

T

18)  Condo in Rome or Paris

T

19)  Medical building housing doctor’s practice

T

20) A lot in Florida

T

21) Cabin in Pennsylvania

T

22) A 17% ownership interest in apartment complex?

T

23) A donor can receive the charitable deduction benefits over what period.

C) Six years

24) Which of these open-ended questions might you feel comfortable asking a prospective donor?

D) All of the above

25) What do the donors get from a gift of real estate?

E) All of the above

A must-have reference guide for all gift planners.

This is a super expanded version of our famous Pocket Guide on the right.

2020 Planned Giving Pocket Guide (includes a mini Gift Comparison Chart)
This is not another ways-of-giving brochure — it's a "why's of giving" that helps you better understand the upside and downside of different giving options for both you and your prospects. 
Over 4,000 satisfied fundraisers have purchased this booklet.

The valuable above information is thanks to Chase Magnuson and Dennis Haber, who bring over 40 years of experience in corporate consulting and commercial investment real estate.

Chase is President of Real Estate for Charities. He holds the elite Certified Commercial Investment Member (CCIM) designation, an attainment only four percent of all commercial real estate practitioners can claim. He has won several national awards for real estate transactions and has been cited as an authority on charitable real estate giving in articles for Forbes, The Wall Street Journal, and The New York Times. Chase has established alliances and strategies throughout his career for charities to act as facilitators to handle gifts of real estate that can be beneficial to both the donors, whether individual or corporate, and the recipients.

“Dennis Haber and Chase Magnuson have done a huge favor for donors and non-profit organizations by writing The Secret Power Behind Real Estate Donations.”
Morgan C. Dodd
Director of Gift Planning
National Parks Conservation Association

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