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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.8 Pooled Income Fund  >  3.8.2 Pooled Income Fund Valuation and Taxation  >  Basic Quiz

Basic Quiz - 3.8.2 Pooled Income Fund Valuation and Taxation

1. The tax code requires that pooled income funds be revalued at least annually.
           
2. A pooled income fund must be valued each year by an appraiser who meets the IRS qualification rules.
           
3. The value of a pooled income fund is determined by averaging the high and low selling price of its investments on January 1st each year.
           
4. The periodic and proper valuation of a pooled income fund is essential for proper operation of the fund.
           
5. The highest rate of return for a pooled income fund is determined by combining the income yield and the growth rate of the fund.
           
6. For pooled income funds in existence for three years or more, the applicable federal rate must be used when computing the charitable deduction.
           
7. If a pooled income fund has not been in existence for three years, then the fund must use an averaged applicable federal rate.
           
8. Depending on the type of pooled income fund created, a donor may elect to receive either an annuity payment or a unitrust type payment.
           
9. In general, a pooled income fund is a better vehicle than a charitable gift annuity or a charitable remainder trust.
           
10. The pooled income fund donor may only deduct the cost basis of the asset contributed.