Prepared for: Donor name
A. Input Assumptions | |||
---|---|---|---|
Date of transfer | February 12, 2025 | ||
Fair market value of property transferred | $1,000,000.00 | ||
Nearest age on the date of the gift for Beneficiary 1 is | 92 | ||
Annual annuity rate | 6% | ||
Payment frequency | Quarterly | ||
Is payment at beginning or end of payment period | End | ||
The discount rate (effective 2/2025) is | 5.4% | ||
The mortality table is based on the census taken in | 2010 |
B. Calculation of Present Value of Remainder Interest (for Number of Lives) | ||
---|---|---|
1. | Fair market value of property transferred | $1,000,000.00 |
2. | Annual annuity rate | 6% |
3. | Annuity amount payable on an annual basis | $60,000.00 |
4. | Factor for present worth of an annuity (based on Table S) | 3.263 |
5. | Line 3 annuity amount times Line 4 factor | $195,780.00 |
6. | Adjustment factor for payment frequency (from Table K) | 1.02 |
7. | Adjusted annuity value (Line 5 * Line 6) | $199,695.60 |
8. | Amount of first annuity payment if payment is made at beginning of period for a non-term annuity trust (otherwise 0) | $0.00 |
9. | Present value of annuity interest (Line 7 + Line 8) | $199,695.60 |
10. | Minimum value of annuity interest (lesser of Line 1 and Line 9) | $199,695.60 |
11. | Present value of remainder interest = the tax deduction (Line 1 - Line 10) | $800,304.40 |
C. Calculation of Tax Deduction for Charitable Remainder Annuity Trusts | ||
---|---|---|
Fair market value of property transferred | $1,000,000.00 | |
Present value of remainder interest in annuity trust factor as a percent | 80.03% | |
Present value of remainder interest = the tax deduction (Line 1 * Line 2) | $800,304.40 | |
10% remainder interest test | Passed | |
Probability that the annuitant will survive to the exhaustion of the fund | 0% | |
5% probability test | Passed |
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.