Charitable Gift Annuity - One Life

Prepared for: Donor name

A. Input Assumptions
Date of transfer June 3, 2023
Fair market value of property transferred $10,000.00
Nearest age on the date of the gift for Beneficiary 1 is 84
Date of first payment June 30, 2023
Annual annuity rate for immediate annuity 8.5%
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 4/2023 discount rate of 5%
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 8.5%
3. Annuity amount payable on an annual basis $850.00
4. Factor for present worth of a single life annuity (based on table S) 5.1594
5. Adjustment factor based on payment frequency from Pub. 1457, Table K 1.0186
6. Adjusted value of $1.00 (Line 4 * Line 5) 5.2554
7. Adjusted annuity value (Line 3 * Line 6) $4,467.09
8. Excess of actual 1st payment over pro rata 1st payment
(0 for pro rata first payment)

9. Present value of annuity (Line 7 + Line 8) $4,467.09
10. Minimum value of annuity (lesser of line 1 and line 9) $4,467.09
11. Present value of remainder interest (Line 1 - Line 10). The tax deduction $5,532.91

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 7.3 years payments of $850.00 will contain $611.93 of tax-free income and $238.70 of ordinary income. All income will be ordinary after 7.3 years.

My disclaimer.