Prepared for: Donor name
| A. Input Assumptions | |
|---|---|
| Date of transfer | April 25, 2021 |
| Fair market value of property transferred | $100,000.00 |
| The term income interest of the trust will last | 20 years |
| Annual annuity rate | 5% |
| Payment frequency | Quarterly |
| Is payment at beginning or end of payment period | End |
| The discount rate (effective 4/2021) is | 1% |
| The mortality table is based on the census taken in | 2000 |
| B. Calculation of Present Value of Remainder Interest (for Term Certain) | ||
|---|---|---|
| 1. | Fair market value of property transferred | $100,000.00 |
| 2. | Annual annuity rate | 5% |
| 3. | Annuity amount payable on an annual basis | $5,000.00 |
| 4. | Factor for present worth of an annuity (based on Table S) | 18.0456 |
| 5. | Line 3 annuity amount times Line 4 factor | $90,228.00 |
| 6. | Adjustment factor for payment frequency (from Table K) | 1.0037 |
| 7. | Adjusted annuity value (Line 5 * Line 6) | $90,561.84 |
| 8. | Amount of first annuity payment if payment is made at beginning of period for a non-term annuity trust (otherwise 0) |
$0.00 |
| 9. | Present value of annuity interest (Line 7 + Line 8) | $90,561.84 |
| 10. | Minimum value of annuity interest (lesser of Line 1 and Line 9) | $90,561.84 |
| 11. | Present value of remainder interest = the tax deduction (Line 1 - Line 10) | $9,438.16 |
| C. Calculation of Tax Deduction for Charitable Remainder Annuity Trusts | |
|---|---|
| Fair market value of property transferred | $100,000.00 |
| Present value of remainder interest in annuity trust factor as a percent | 9.44% |
| Present value of remainder interest = the tax deduction (Line 1 * Line 2) | $9,438.16 |
| 10% remainder interest test | Failed |
| 5% probability test | N/A |
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.