Charitable Gift Annuity - One Life

Prepared for: Donor name

A. Input Assumptions
Date of transfer April 23, 2017
Fair market value of property transferred $10,000.00
Nearest age on the date of the gift for Beneficiary 1 is 78
Date of first payment June 30, 2017
Annual annuity rate for immediate annuity 6.4%
Payment frequency Quarterly
Prorate first payment or Full first payment? Prorate
Is payment at the beginning or end of the payment period? End
The discount rate (effective 4/2017) is 2.6%
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 6.4%
3. Annuity amount payable on an annual basis $640.00
4. Factor for present worth of a single life annuity (based on table S) 7.9308
5. Adjustment factor based on payment frequency from Pub. 1457, Table K 1.0097
6. Adjusted value of $1.00 (Line 4 * Line 5) 8.0077
7. Adjusted annuity value (Line 3 * Line 6) $5,124.93
8. Excess of actual 1st payment over pro rata 1st payment
(0 for pro rata first payment)

9. Present value of annuity (Line 7 + Line 8) $5,124.93
10. Minimum value of annuity (lesser of line 1 and line 9) $5,124.93
11. Present value of remainder interest (Line 1 - Line 10). The tax deduction $4,875.07

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 10.5 years payments of $640.00 will contain $488.90 of tax-free income and $151.91 of ordinary income. All income will be ordinary after 10.5 years.

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.

Copyright (c) 2014 The Sharpe Group, Inc.