Prepared for: Donor name
1.0425
| A. Input Assumptions | |||
|---|---|---|---|
| Date of transfer | September 27, 2023 | ||
| Fair market value of property transferred | $100,000.00 | ||
| Nearest age on the date of the gift for Beneficiary 1 is | 74 | ||
| Date of first payment | 4/1/2020 | ||
| Annuity starting date (payment period before 1st payment) | January 1, 2020 | ||
| Annual annuity rate for immediate annuity | 5.9% | ||
| Payment frequency | Quarterly | ||
| Prorate first payment or Full first payment? | Prorate | ||
| Deferred annuity interest adjustment factor | 1.0425 | ||
| Annual annuity rate adjusted for deferral | 6.2% | ||
| The discount rate (effective 9/2023) is | 5% | ||
| The mortality table is based on the census taken in | 2010 | ||
| B. Present Value of Remainder Interest - One Life Deferred | ||
|---|---|---|
| 1. | Age nearest to date of transfer | 74 |
| 2. | Age nearest to annuity starting date | 70 |
| 3. | Value of Dx from IRS Pub. 1457, Table H based on | |
| (a) Line 1 age | 2458.192 | |
| (b) Line 2 age | 1924.575 | |
| 4. | Line 3(a) divided by Line 3(b) | 1.277265 |
| 5. | Unadjusted value of $1 of single life annuity from IRS Pub. 1457, Table S based on Line 1 age | 9.8828 |
| 6. | Adjustment factor based on payment frequency from Pub 1457, Table K | 1.0186 |
| 7. | Adjusted value of $1 of single life annuity (Line 5 * Line 6) | 10.0666 |
| 8. | Value of $1 of deferred single life annuity (Line 4 * Line 7) | 12.8577 |
| 9. | Annual annuity rate for deferred annuity | 5.9% |
| 10. | Deferred annuity interest adjustment factor | 1.0425 |
| 11. | Deferred annuity rate (Line 9 * Line 10) | 6.2% |
| 12. | Net fair market value paid for annuity | $100,000.00 |
| 13. | Annuity amount payable on an annual basis (line 11 * Line 12) | $6,200.00 |
| 14. | Present value of annuity (Line 8 * Line 13) | $79,717.74 |
| 15. | Minimum value of annuity (lesser of Line 12 and Line 14) | $79,717.74 |
| 16. | Present value of remainder interest | $20,282.26 |
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 13.1 years payments of $6,200.00 will contain $3,957.55 of tax-free income and $2,242.45 of ordinary income. All income will be ordinary after 13.1 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.
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