Deferred Charitable Gift Annuity - One Life

Prepared for: Donor name

A. Input Assumptions
Date of transfer March 25, 2017
Fair market value of property transferred $100,000.00
Nearest age on the date of the gift for Beneficiary 1 is 78
Date of first payment 4/1/2015
Annuity starting date (payment period before 1st payment) January 1, 2015
Annual annuity rate for immediate annuity 6%
Payment frequency Quarterly
Prorate first payment or Full first payment? Prorate
Deferred annuity interest adjustment factor 1.04
Annual annuity rate adjusted for deferral 6.2%
IRC Sec. 7520(a) election to use 2/2017 discount rate of 2.6%
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 78
2. Age nearest to annuity starting date 76
3. Value of Dx from IRS Pub. 1457, Table H based on  
  (a) Line 1 age 8827.327
  (b) Line 2 age 7660.37
4. Line 3(a) divided by Line 3(b) 1.152337
5. Unadjusted value of $1 of single life annuity from IRS Pub. 1457, Table S based on Line 1 age 8.7254
6. Adjustment factor based on payment frequency from Pub 1457, Table K 1.0097
7. Adjusted value of $1 of single life annuity (Line 5 * Line 6) 8.81
8. Value of $1 of deferred single life annuity (Line 4 * Line 7) 10.1521
9. Annual annuity rate for deferred annuity 6%
10. Deferred annuity interest adjustment factor 1.04
11. Deferred annuity rate (Line 9 * Line 10) 6.2%
12. Net fair market value paid for annuity $100,000.00
13. Annuity amount payable on an annual basis (line 11 * Line 12) $6,200.00
14. Present value of annuity (Line 8 * Line 13) $62,943.02
15. Minimum value of annuity (lesser of Line 12 and Line 14) $62,943.02
16. Present value of remainder interest $37,056.98

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 $6,200.00 will contain $4,575.83 of tax-free income and $1,624.17 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.

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