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 | 66 |
Is fund three years old or older? | No |
Highest yearly rate of return for preceding three years (based on discount rate if fund has been in existance for less that three years) | 3.8% |
The discount rate (effective 2/2025) is | 5.4% |
The mortality table is based on the census taken in | 2010 |
B. Calculation of Income Tax Deduction | |||
---|---|---|---|
1. | Fair market value of property transferred | $1,000,000.00 | |
2. | Highest yearly rate of return for preceding three years | 3.8% | |
3. | Interpolation of Table S factor | ||
(a) | Nearest usable payout rate less than or equal to the Line 2 rate | 3.8% | |
(b) | Line 2 minus line 3(a) | -4.4408920985E-16% | |
(c) | Line 3(b) divided by .20 percent | -2.22044604925E-13 | |
(d) | Factor from Table S at the line 3(a) rate | 0.53142 | |
(e) | Factor from Table S at the rate .20 percent higher than the line 3(a) rate | 0.53126 | |
(f) | Line 3(d) minus line 3(e) | 0.00016 | |
(g) | Line 3(f) times line 3(c) (interpolation adjustment) | 0 | |
(h) | Interpolated Table S factor (line 3(d) minus line 3(g)) | 0.53142 | |
4. | Present value of remainder interest = tax deduction (Line 1 * Line 3(h)) | 531,420.00 |
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.