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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.2 C Corporations  >  4.2.2 Asset Sale with Unitrust  >  Basic Quiz

Basic Quiz - 4.2.2 Asset Sale with Unitrust

1. When a corporation sells its assets in anticipation of liquidation, it does not incur a capital gains tax on the sale.
           
2. Most sellers of a corporation prefer an asset sale to a stock sale.
           
3. Most buyers of a corporation prefer a stock sale to an asset sale.
           
4. It may be possible to avoid one level of tax when liquidating a corporation.
           
5. By transferring the corporate stock into a charitable remainder trust before the corporation sells its assets, the corporation can bypass capital gains tax on the sale of its assets.
           
6. All shareholders must agree to create a charitable remainder trust in order to bypass capital gains tax at the shareholder level.
           
7. When a corporation liquidates, it pays capital gains tax at the individual capital gains rate.
           
8. With a C corporation there may be two levels of tax on the same property.
           
9. C corporations offer the protection of limited liability to their shareholders.
           
10. If a shareholder chooses to transfer only part of his or her stock into a CRT, the charitable tax deduction will offset some or all of the capital gain recognized on the stock sold for cash.