Hu Makes a Gift of His Home to a Local

question 97

Multiple Choice

Hu makes a gift of his home to a local homeless shelter (a 501(c) (3) charity) .Hu will retain his home for 10 years,after which the homeless shelter will take possession.The value of Hu's 10-year interest is $30,000 and the remainder interest is valued at $120,000.Which of the following statements is correct?

• A)Hu is allowed a charitable deduction on his gift tax return for $150,000 in the current year.
• B)Hu is allowed an exclusion of $12,000 on his gift of $120,000 to the charity.
• C)Hu is not allowed to deduct the contribution until the charity takes possession in 10 years.
• D)Hu has a charitable contribution deduction of $120,000 on his current gift tax return.

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