Prepared for: Donor name
1.035
| A. Input Assumptions | |||
|---|---|---|---|
| Date of transfer | February 4, 2023 | ||
| Fair market value of property transferred | $100,000.00 | ||
| Nearest age on the date of the gift for Beneficiary 1 is | 73 | ||
| Date of first payment | 4/1/2020 | ||
| Annuity starting date (payment period before 1st payment) | January 1, 2020 | ||
| Annual annuity rate for immediate annuity | 5.3% | ||
| Payment frequency | Quarterly | ||
| Prorate first payment or Full first payment? | Prorate | ||
| Deferred annuity interest adjustment factor | 1.035 | ||
| Annual annuity rate adjusted for deferral | 5.5% | ||
| IRC Sec. 7520(a) election to use 12/2022 discount rate of | 5.2% | ||
| The mortality table is based on the census taken in | 2000 | ||
| B. Present Value of Remainder Interest - One Life Deferred | ||
|---|---|---|
| 1. | Age nearest to date of transfer | 73 |
| 2. | Age nearest to annuity starting date | 70 |
| 3. | Value of Dx from IRS Pub. 1457, Table H based on | |
| (a) Line 1 age | 2151.617 | |
| (b) Line 2 age | 1706.288 | |
| 4. | Line 3(a) divided by Line 3(b) | 1.260993 |
| 5. | Unadjusted value of $1 of single life annuity from IRS Pub. 1457, Table S based on Line 1 age | 9.1808 |
| 6. | Adjustment factor based on payment frequency from Pub 1457, Table K | 1.0193 |
| 7. | Adjusted value of $1 of single life annuity (Line 5 * Line 6) | 9.358 |
| 8. | Value of $1 of deferred single life annuity (Line 4 * Line 7) | 11.8004 |
| 9. | Annual annuity rate for deferred annuity | 5.3% |
| 10. | Deferred annuity interest adjustment factor | 1.035 |
| 11. | Deferred annuity rate (Line 9 * Line 10) | 5.5% |
| 12. | Net fair market value paid for annuity | $100,000.00 |
| 13. | Annuity amount payable on an annual basis (line 11 * Line 12) | $5,500.00 |
| 14. | Present value of annuity (Line 8 * Line 13) | $64,902.20 |
| 15. | Minimum value of annuity (lesser of Line 12 and Line 14) | $64,902.20 |
| 16. | Present value of remainder interest | $35,097.80 |
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 13.8 years payments of $5,500.00 will contain $3,241.45 of tax-free income and $2,258.55 of ordinary income. All income will be ordinary after 13.8 years.
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