For All of 2012, Aaron (A Calendar Year Taxpayer) Allowed

question 39

True/False

For all of 2012, Aaron (a calendar year taxpayer) allowed the City Men's Shelter, a qualified charitable organization, to use a building he owns rent-free.The building normally rents for $12,000 a year.Aaron must report $12,000 of rent income and will be allowed a charitable contribution deduction for 2012 of $12,000.

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Definitions:

Property

Assets owned by a person or a company, encompassing both physical objects and intellectual property.

Life Insurance Proceeds

The money paid to the beneficiaries of a life insurance policy when the insured person passes away.

Gross Income

Total income from all sources before deductions, exemptions, and taxes.

Insured

A person or entity covered under an insurance policy, providing protection against specified risks or losses.