Prepared for: Donor name
| A. Input Assumptions | |||
|---|---|---|---|
| Date of transfer | September 10, 2010 | ||
| Fair market value of property transferred | $10,000.00 | ||
| Nearest age on the date of the gift for Beneficiary 1 is | 72 | ||
| Date of first payment | September 30, 2010 | ||
| Annual annuity rate for immediate annuity | 6% | ||
| Payment frequency | Quarterly | ||
| Prorate first payment or Full first payment? | Prorate | ||
| Is payment at the beginning or end of the payment period? | End | ||
| IRC Sec. 7520(a) election to use 7/2010 discount rate of | 2.8% | ||
| The mortality table is based on the census taken in | 2000 | ||
| B. Present Value of Remainder Interest - Immediate | ||
|---|---|---|
| 1. | Net fair market value paid for annuity | $10,000.00 |
| 2. | Annual annuity rate | 6% |
| 3. | Annuity amount payable on an annual basis | $600.00 |
| 4. | Factor for present worth of a single life annuity (based on table S) | 10.2436 |
| 5. | Adjustment factor based on payment frequency from Pub. 1457, Table K | 1.0104 |
| 6. | Adjusted value of $1.00 (Line 4 * Line 5) | 10.3501 |
| 7. | Adjusted annuity value (Line 3 * Line 6) | $6,210.06 |
| 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) | $6,210.06 |
| 10. | Minimum value of annuity (lesser of line 1 and line 9) | $6,210.06 |
| 11. | Present value of remainder interest (Line 1 - Line 10). The tax deduction | $3,789.94 |
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 14.5 years payments of $600.00 will contain $428.28 of tax-free income and $171.72 of ordinary income. All income will be ordinary after 14.5 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.
Share
Print
PDF
Help