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) |
$0.00 |
| 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.
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