Deferred Gift Annuity Deduction Calculator

The deferred gift annuity makes fixed payments for one or two lives. Part of the payout may be tax free.

* Required fields

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Number of Beneficiaries

One Two

Click the appropriate button for a presentation of one or two beneficiaries. Selecting one beneficiary will cause the second beneficiary and the associated name and birthdate fields to be hidden from view.

Gift Date

Month:

Day:

Year:

Please enter a valid gift date

Gift month field is required

Gift day field is required

Gift year field is required

Rate of the Month

The current Rate of the Month (AFR) will display in the drop down box. Choose one of the three rates offered.

Donor

Enter the name of the Donor. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", etc.

Donor is required

First Beneficiary

Enter the name of the person. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", "Sr.", etc. For the remainder unitrust the first person is the first income recipient or beneficiary of the agreement.

First beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the first beneficiary

Birth month of the first beneficiary is required

Birth day of the first beneficiary is required

Birth year of the first beneficiary is required

Second Beneficiary

Second beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the second beneficiary

Birth month of the second beneficiary is required

Birth day of the second beneficiary is required

Birth year of the second beneficiary is required

Payout Date

Month:

Day:

Year:

Payout month is required

Payout day is required

Payout year is required

Enter the date of the first payment to be made on this annuity. First payment must be deferred at least a year from the gift date.

Payout Rate

Trust payout is required

Payout must be between 5% and 50%

Enter the percent income payout to the donor.

Gift Amount $

Please enter a valid gift amount

Gift amount is required

Enter the amount of cash or the fair market value (FMV) of the asset(s) used to fund the CGA. For assets such as real estate, closely-held stock and other hard to value assets, the FMV is the appraised value of the property on the date of the gift.

Cost Basis $

Please enter a valid cost basis

Cost basis is required

Enter the cost basis of the asset being used to fund the trust or annuity. If the asset is cash, the cost basis is equal to the gift amount. If it is appreciated property, the cost basis will most likely be the amount you originally paid for the property. The cost basis is used to determine the capital gains tax which will be bypassed as a result of selling the asset. If the cost basis is not known or cannot be proven, the IRS assumes the cost basis to be $0. If cash funds the gift annuity, enter the same value as "Value of Property."

Payment Frequency

Select either monthly, quarterly, semiannual, or annual income payments to the beneficiary(ies) of the income. The choice of payment frequency does affect the amount of the charitable deduction as the more frequent the payment (i.e. monthly as opposed to annually), the smaller the donor's tax deduction.

Under the Internal Revenue Code, the charitable income tax deduction must be at least 10% of the initial value. The payout amount has been lowered to qualify under the IRS 10% deduction test. This calculation includes a safety factor of 0.04%. The deduction factor will be 0.10040 or greater. The Maximum Payout Rate by Crescendo 10% Deduction Test: cres_calc_maxrate10

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The Utah Valley University Planned Giving Department provides information on charitable giving opportunities and financial planning tools, including calculators, as a public service for educational purposes only. This content is not intended as legal, tax, or financial advice. Individuals are encouraged to consult with their own financial, legal, or tax advisors when making decisions about charitable giving or tax and financial strategies.

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Deferred Gift Annuity Deduction Calculator

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Utah Valley University
in a Meaningful Way