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Tuesday, September 7, 2010
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Calculators |
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A unitrust is an excellent way to bypass capital gain, increase income
and receive a charitable deduction. A unitrust is frequently used to sell appreciated stock
or land and pay income to a donor or donor and spouse for their lifetime. |
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Annuity trusts provide fixed payment for the lifetime of one or two
persons. It is ideal for receiving gifts of appreciated stock. The stock may be sold tax-free.
There is a charitable deduction when the trust is funded and the donors may receive income for
their lifetimes. Since the payout is fixed, the annuity trust is usually favored by donors age
75 or greater. |
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A gift annuity provides high fixed payments for one or two lives.
It may be funded with cash or stock. The donor enjoys two tax benefits. First, there is
an income tax deduction. Second, a portion of the high fixed payments is tax-free. With
the combination of the tax benefits, the gift annuity provides both higher income and lower
taxes. |
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A deferred gift annuity provides high fixed payments for one or two lives.
It may be funded with cash or stock. The donor enjoys two tax benefits. First, there is
an income tax deduction. Second, a portion of the high fixed payments is tax-free. With
the combination of the tax benefits, the deferred gift annuity provides both higher income and lower
taxes. |
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Many individuals with appreciated stock or land would like to have cash
and sell with no tax. An excellent way to achieve this is to sell part of the property and use
the two tax benefits of a unitrust to create a zero capital gains tax sale. The part of the
property placed in the unitrust may be sold tax-free. In addition, the charitable deduction from
the trust may offset the tax on the part that is sold for cash. The donor usually ends up with
about one-third in cash and two-thirds in the trust - all with no net tax pay. |
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When appreciated land or stock is sold, there may be a large capital
gains tax to pay. An excellent way to reduce or eliminate this tax is to gift part of the
appreciated property. The gift or property will both bypass capital gain on that part and
produce a charitable income tax deduction. The income tax deduction on the gift portion will
offset in part or perhaps the entire tax on the part that is sold. |
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The American Council on Gift Annuities creates standard rates
for gift annuities. These are available for one-life or two-life agreements.
The gift annuity rate increases for senior persons. Merely enter your age and
calculate to find the gift annuity rate for yourself.. |
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Based on government tables, it is possible to determine the
probable life expectancy. As a person becomes more senior, their life expectancy
decreases. However, as you become more senior, the age at which you pass away also
increases. Merely enter your age or ages and press calculate to determine your life
expectancy under government tables. Fortunately, many persons enjoy good health and
actually live longer than the government expectancy indicates. |
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It’s possible to calculate the potential tax on your estate. Enter
your estate value. If you have used your exemption or part of the exemption, enter that
amount. Then select the year for your estate. Based on your estate value and the year
selected, the program will calculate tentative tax, the value of the credit and your
net gift or estate tax. Since the exemption equivalent is projected to increase, there
may be a lower estate tax in future years. |
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Income taxes will be different for a couple or for a single person.
Select your category and your taxable income. Remember that this taxable income is your
total income less adjustments and either itemized deductions or the standard deduction.
Select calculate and you will be able to see your estimated income tax. |
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A loan on your home, car or other item will typically have a principal
amount, a number of years for repayment and an interest rate. Enter this principal, the
selected number of years and the interest rate and press calculate. GiftLegacy will show
the monthly payment to pay off the loan in that number of year. |
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If you have a dollar today and invest it, after a number of years at a
given interest rate, it is possible to understand what it will be worth in the future.
Similarly, if you know that you will receive a dollar several years into the future, based
upon the interest rate and number of years, you can discount or reduce that to the present
value. Enter the value, the number of years and the interest rate and press calculate to
change present value to future value or future value to present value. |
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