Prepared for: Donor name
A. Input Assumptions | |||
---|---|---|---|
Date of transfer | November 7, 2024 | ||
Fair market value of property transferred | $100,000.00 | ||
Nearest age on the date of the gift for Beneficiary 1 is | 66 | ||
Nearest age on the date of the gift for Beneficiary 2 is | 66 | ||
Date of first payment | December 31, 2024 | ||
Annual annuity rate for immediate annuity | 5.1% | ||
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 9/2024 discount rate of | 4.8% | ||
The mortality table is based on the census taken in year | 2010 |
B. Present Value of Remainder Interest - Immediate | ||
---|---|---|
1. | Net fair market value paid for annuity | $100,000.00 |
2. | Annual annuity rate | 5.1% |
3. | Annuity amount payable on an annual basis | $5,100.00 |
4. | Factor for present worth of a single life annuity (based on table S) | 13.4608 |
5. | Adjustment factor based on payment frequency from Pub. 1457, Table K | 1.0178 |
6. | Adjusted value of $1.00 (Line 4 * Line 5) | 13.7004 |
7. | Adjusted annuity value (Line 3 * Line 6) | $69,872.04 |
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) | $69,872.04 |
10. | Minimum value of annuity (lesser of line 1 and line 9) | $69,872.04 |
11. | Present value of remainder interest (Line 1 - Line 10) | $30,127.96 |
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 24 years payments of $5,100.00 will contain $2,911.34 of tax-free income and $2,188.67 of ordinary income. All income will be ordinary after 24 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.