Deferred Charitable Gift Annuity - One Life

Prepared for: Donor name


A. Input Assumptions
Date of transfer December 5, 2023
Fair market value of property transferred $100,000.00
Nearest age on the date of the gift for Beneficiary 1 is 74
Date of first payment 4/1/2020
Annuity starting date (payment period before 1st payment) January 1, 2020
Annual annuity rate for immediate annuity 5.9%
Payment frequency Quarterly
Prorate first payment or Full first payment? Prorate
Deferred annuity interest adjustment factor 1.0425
Annual annuity rate adjusted for deferral 6.2%
The discount rate (effective 12/2023) is 5.8%
The mortality table is based on the census taken in 2010
B. Present Value of Remainder Interest - One Life Deferred
1. Age nearest to date of transfer 74
2. Age nearest to annuity starting date 70
3. Value of Dx from IRS Pub. 1457, Table H based on  
  (a) Line 1 age 1445.007
  (b) Line 2 age 1097.498
4. Line 3(a) divided by Line 3(b) 1.316637
5. Unadjusted value of $1 of single life annuity from IRS Pub. 1457, Table S based on Line 1 age 9.2978
6. Adjustment factor based on payment frequency from Pub 1457, Table K 1.0215
7. Adjusted value of $1 of single life annuity (Line 5 * Line 6) 9.4977
8. Value of $1 of deferred single life annuity (Line 4 * Line 7) 12.505
9. Annual annuity rate for deferred annuity 5.9%
10. Deferred annuity interest adjustment factor 1.0425
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) $77,531.00
15. Minimum value of annuity (lesser of Line 12 and Line 14) $77,531.00
16. Present value of remainder interest $22,469.00

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 13.1 years payments of $6,200.00 will contain $3,760.60 of tax-free income and $2,439.40 of ordinary income. All income will be ordinary after 13.1 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.