Prepared for: Donor name
A. Input Assumptions | |
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Date of transfer | November 11, 2024 |
Fair market value of property transferred | $1,000,000.00 |
Nearest age on the date of the gift for Beneficiary 1 is | 92 |
Nearest age on the date of the gift for Beneficiary 2 is | 88 |
Annual annuity rate | 5% |
Payment frequency | Quarterly |
Is payment at beginning or end of payment period | End |
IRC Sec. 7520(a) election to use 9/2024 discount rate of | 4.8% |
The mortality table is based on the census taken in | 2010 |
B. Calculation of Present Value of Remainder Interest (for Number of Lives) | ||
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1. | Fair market value of property transferred | $1,000,000.00 |
2. | Annual annuity rate | 5% |
3. | Annuity amount payable on an annual basis | $50,000.00 |
4. | Factor for present worth of an annuity (based on Table S) | 5.2998 |
5. | Line 3 annuity amount times Line 4 factor | $264,990.00 |
6. | Adjustment factor for payment frequency (from Table K) | 1.0178 |
7. | Adjusted annuity value (Line 5 * Line 6) | $269,706.82 |
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) | $269,706.82 |
10. | Minimum value of annuity interest (lesser of Line 1 and Line 9) | $269,706.82 |
11. | Present value of remainder interest = the tax deduction (Line 1 - Line 10) | $730,293.18 |
C. Calculation of Tax Deduction for Charitable Remainder Annuity Trusts | |
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Fair market value of property transferred | $1,000,000.00 |
Present value of remainder interest in annuity trust factor as a percent | 73.03% |
Present value of remainder interest = the tax deduction (Line 1 * Line 2) | $730,293.18 |
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.