Prepared for: Donor name
| A. Input Assumptions | |||
|---|---|---|---|
| Date of transfer | September 27, 2021 | ||
| Fair market value of property transferred | $1,000,000.00 | ||
| Nearest age on the date of the gift for Beneficiary name is | 65 | ||
| Nearest age on the date of the gift for Beneficiary name is | 65 | ||
| Date of first payment | September 30, 2021 | ||
| Annual annuity rate for immediate annuity | 3.8% | ||
| 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 8/2021 discount rate of | 1.2% | ||
| 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 | $1,000,000.00 |
| 2. | Annual annuity rate | 3.8% |
| 3. | Annuity amount payable on an annual basis | $38,000.00 |
| 4. | Minimum value of annuity | $748,562.00 |
| 5. | Present value of remainder interest (Line 1 - Line 4) | $251,438.00 |
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 24.9 years payments of $38,000.00 will contain $30,062.73 of tax-free income and $7,937.27 of ordinary income. All income will be ordinary after 24.9 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.