1. Look at the Form 1040 you prepared for Martin and Norma. What is the amount on Form 1040, Line 40?

a. $ 11,200.
b. $ 11,607.
c. $ 10,915. 
d. None of the above.

2. Look at the Form 1040 you prepared for Martin and Norma. What is the amount on Form 1040, Line 74a?

a. $ 810.
b. $ 515.
c. $ 855. 
d. None of the above.

3. If you make any non-cash contribution, you must get and keep a receipt from the charitable organization showing

a. the name of the charitable organization.
b. the date and location of the charitable contribution.
c. a reasonably detailed description of the property.
d. All of the above.

4. If you make any non-cash contributions, you must get and keep a receipt from the charitable organization. However, you are not required to have a receipt where it is impractical to get one (for example, if you leave property at a charity's unattended drop site).

True False

5. Generally, only five types of organizations can be qualified organizations to receive deductible contributions. A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). It must be organized and operated only for

a. religious or charitable purposes.
b. educational, scientific or literary purposes.
c. purposes of prevention of cruelty to children or animals and organizations that foster amateur sports competition.
d. any of the above purposes.

6. The deduction for travel expenses will be denied if you enjoy providing services to the charitable organization.

True False

7. Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there in no significant element of personal pleasure, recreation, or vacation in the travel.

True False

8. You take a deduction for clothing or household items you donate even if the clothing or household items are not in good used condition.

True False

9. If you contribute property with a fair market value that is less than your basis in it,

a. you can claim a deduction for the the property's basis.
b. you can claim a deduction for the property's fair market value.
c. Your deduction is limited to its fair market value.
d. All of the above.

10. You donate stock that you held for 5 months to your church. The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Your charitable contribution deduction is

a. $ 1,000.
b. $ 800.
c. $ 200.
d. $ 1,200.

11. You donate a used car in poor condition to a local high school for use by students studying car repair. A used car guide shows the dealer retail value for this type of car in poor condition is $1,800. However, the guide shows the price for a private party sale of the car is only $ 950. The fair market value of the car is considered to be

a. $ 1,800.
b. $ 1,600.
c. $ 750.
d. $ 950.

12. You own an antique car that you contribute to a museum. You give up ownership, but retain the right to keep the car in your garage with your personal collection. You

a. cannot deduct the contribution because you keep an interest in the property.
b. can deduct the contribution because you contributed it to the museum.
c. can deduct the contribution because you promised to turn the car over to the museum in later years.
d. None of the above.

13. You donated land to a city for as long as the city uses it for a public park. The city does plan to use the land for a park and there is no chance (or only a negligible chance) of the land being used for any different purpose. You

a. cannot deduct the land because there is a negligible chance the land will be used for a different purpose.
b. can deduct your charitable contribution.
c. cannot deduct the land because your requirement that it be used as a park is in your own interest.
d. cannot take the deduction because your contribution is conditional.

14. A carryover of a contribution to a 50% limit organization must be used before contributions in the current year to organizations other than 50% limit organizations.

True False

15. You must keep records to prove the amount of the contributions you make during the year. The type of records you must keep depends on the amount of contribution and if they are

a. cash contributions.
b. non-cash contributions.
c. out-of-pocket expenses when donating your services.
d. Any of the above.

16. An organization generally must give you a written statement if it receives a payment from you that is more than $25 and is partly a contribution and partly for goods or services.

True False

17. A donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.

a. A qualified contribution.
b. A charitable contribution.
c. A benefit trade.
d. A cash contribution.

18. For contributions made in cash, the records you must keep depend on whether the contribution is less that $250, or $250 or more.

True False

19. For a contribution not made in cash, the records you must keep for this contribution includes obtaining a qualified written appraisal of the donated property from a qualified appraiser.

a. For a contribution that is less than $250.
b. For a contribution that is at least $250 but not more than $500.
c. For a contribution that is over $500 but not more than $5,000.
d. For a contribution that is over $5,000.

20. You may be able to deduct contributions to foreign charitable organizations that are covered under an income tax treaty with the United States. Charitable contributions may be deductible to qualified organizations in Canada, Mexico and Israel. To deduct your contribution to organizations in these countries, you generally must  have

a. Income from sources in Canada.
b. Income from sources in Mexico.
c. Income from sources in Israel.
d. Income from sources in these countries.

21. You may be liable for a penalty if you overstate the value or adjusted basis of donated property. The penalty is 20% of the amount by which you underpaid your tax because of the overstatement, if

a. The value or adjusted basis claimed on your return is 150% or more of the correct amount.
b. You underpaid your tax by more than $5,000 because of the overstatement.
c. The value or adjusted basis claimed on your return is 200% or more of the correct amount.
d. Both A and B are correct.

22. You may be liable for a penalty if you overstate the value or adjusted basis of donated property. The penalty is 40% of the amount by which you underpaid your tax because of the overstatement, if

a. The value or adjusted basis claimed on your return is 200% or more of the correct amount.
b. You underpaid your tax by more than $ 5,000 because of the overstatement.
c. The value or adjusted basis claimed on your return is 150% or more of the correct amount, and you underpaid more than $5,000 because of the overstatement.
d. Both A and B are correct.

23. The amount of your deduction is limited to 50%, 30% or 20% of your adjusted gross income, depending on the type of organization you give it to. Churches and conventions or associations of churches are

a. 50% limit organizations.
b. 30% limit organizations.
c. 20% limit organizations.
d. Are organizations to which limits never apply.

24. If your contribution is a conditional gift that depends on a future act or even that may not take place, you cannot take a charitable contribution deduction.

True False

25.  If you buy a candy bar that you would normally buy for .75 cents and pay $5.00, How much of this donation can you claim as a deduction? 

a. $ 5.00
b. $ 4.25
c. $ .75
d. None of the above.

26.  Money or property given to the following is deductible as charitable contributions except:

a. Nonprofit schools or hospitals
b. Civic leagues and chambers or commerce
c. Religious organizations.
d. War veterans' groups.

27. You work for several hours each morning on an archeological dig sponsored by a charitable organization. The rest of the day is free for recreation and sightseeing. You

a. can take a charitable contribution deduction for the few hours that you worked very hard.
b. cannot take a charitable contribution deduction even though you work very hard during those few hours.
c. can take a deduction because the free time for recreation and sightseeing is not considered a significant element of personal pleasure.
d. None of the above.

28. If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value.

True False

29. The fair market value of used clothing and other personal items is usually far less that the price you paid for them. There are no fixed formulas or methods for finding the value of items of clothing. When donating clothing you should claim as value

a. The price that you paid when you bought the clothing.
b. The price that buyers of used items actually pay in used clothing stores, such as consignment of thrift shops.
c. The price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.
d. Any amount as long as it is not over 200% of the true value.

30. If you contribute property with a fair market value that is more than your basis in it, you may

a. Figure your deduction using the new appreciated fair market value of the property. 
b. Have to reduce the fair market value by the amount of appreciation when you figure your deduction.
c. Use the basis of the property, which is generally what you paid for it.
d. Both b and c are correct.

31. Look at the Form 540 you prepared for Martin and Norma. What is the amount on Form 540, Line 18?

a. $ 11,607.
b. $ 10,915.
c. $ 11,200. 
d. None of the above.

32. Look at the Form 540 you prepared for Martin and Norma. What is the amount on Form 540, Line 66?

a. $ 120.
b. $ 15
c. $ 7 
d. None of the above.

33. If deducting a prior year charitable contribution carryover, and the California carryover is larger than the federal carryover, enter the additional amount as a positive number on line 41 of Schedule CA (Form 540).

True False

34. Your California deduction may be different from your federal deduction. California limits the amount of your deduction to _____ of your federal adjusted gross income.

a. 20%
b. 30%
c. 40%
d. 50%

35. If deducting a charitable contribution carryover of appreciated stock donated to a private operating foundation prior to 01/01/2002 and the fair market value allowed for federal purposes is larger than the basis allowed for California purposes, enter the difference as a positive number on line 41 of Schedule CA (Form 540).

True False