Prepared for: Donor name
| A. Input Assumptions | |||
|---|---|---|---|
| Date of transfer | October 7, 2026 | ||
| Fair market value of property transferred | $10,000.00 | ||
| Nearest age on the date of the gift for Beneficiary 1 is | 88 | ||
| Date of first payment | December 31, 2026 | ||
| Annual annuity rate for immediate annuity | 9.7% | ||
| Payment frequency | Quarterly | ||
| Prorate first payment or Full first payment? | Prorate | ||
| Is payment at the beginning or end of the payment period? | End | ||
| The discount rate (effective 10/2026) is | 5.6% | ||
| The mortality table is based on the census taken in | 2010 | ||
| B. Present Value of Remainder Interest - Immediate | ||
|---|---|---|
| 1. | Net fair market value paid for annuity | $10,000.00 |
| 2. | Annual annuity rate | 9.7% |
| 3. | Annuity amount payable on an annual basis | $970.00 |
| 4. | Factor for present worth of a single life annuity (based on table S) | 4.168 |
| 5. | Adjustment factor based on payment frequency from Pub. 1457, Table K | 1.0208 |
| 6. | Adjusted value of $1.00 (Line 4 * Line 5) | 4.2547 |
| 7. | Adjusted annuity value (Line 3 * Line 6) | $4,127.06 |
| 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) | $4,127.06 |
| 10. | Minimum value of annuity (lesser of line 1 and line 9) | $4,127.06 |
| 11. | Present value of remainder interest (Line 1 - Line 10). The tax deduction | $5,872.94 |
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 5.6 years payments of $970.00 will contain $736.98 of tax-free income and $233.30 of ordinary income. All income will be ordinary after 5.6 years.
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