Prepared for: Donor name
A. Input Assumptions | |||
---|---|---|---|
Date of transfer | December 6, 2019 | ||
Fair market value of property transferred | $100,000.00 | ||
Nearest age on the date of the gift for Beneficiary 1 is | 92 | ||
Nearest age on the date of the gift for Beneficiary 2 is | 87 | ||
Date of first payment | December 31, 2019 | ||
Annual annuity rate for immediate annuity | 8.5% | ||
Payment frequency | Quarterly | ||
Prorate first payment or Full first payment? | Prorate | ||
Is payment at the beginning or end of the payment period? | End | ||
The discount rate (effective 12/2019) is | 2% | ||
The mortality table is based on the census taken in year | 2000 |
B. Present Value of Remainder Interest - Immediate | ||
---|---|---|
1. | Net fair market value paid for annuity | $100,000.00 |
2. | Annual annuity rate | 8.5% |
3. | Annuity amount payable on an annual basis | $8,500.00 |
4. | Factor for present worth of a single life annuity (based on table S) | 6.1245 |
5. | Adjustment factor based on payment frequency from Pub. 1457, Table K | 1.0075 |
6. | Adjusted value of $1.00 (Line 4 * Line 5) | 6.1704 |
7. | Adjusted annuity value (Line 3 * Line 6) | $52,448.40 |
8. | Excess of actual 1st payment over pro rata 1st payment (0 for pro rata first payment) |
$0.00 |
9. | Present value of annuity (Line 7 + Line 8) | $52,448.40 |
10. | Minimum value of annuity (lesser of line 1 and line 9) | $52,448.40 |
11. | Present value of remainder interest (Line 1 - Line 10) | $47,551.60 |
Depending on the type of asset you contribute, a portion of your payment may be taxable to you as a combination of ordinary income, long-term capital gain, and a tax-free return of principal. This report has been calculated assuming a contribution of cash. Each of your next 7.4 years payments of $8,500.00 will contain $7,087.62 of tax-free income and $1,412.38 of ordinary income. All income will be ordinary after 7.4 years.
NOTE: This calculation is provided for educational purposes only. The type of assets transferred, the actual date of the gift, and other factors may have a material effect on the amount or use of your deduction. You are advised to seek the advice of your tax advisors before implementing a gift of this type.