U.S. Legacy Income Trusts

Charitable Income Tax Deduction Calculator

This calculator indicates the charitable income tax deduction available to Donors making a current contribution to a Trust and compared charitable planned-giving instruments, which varies as a percentage of the contribution value based on the number of individual income beneficiaries designated, their ages (as of nearest birthday) on the date of contribution and other factors relevant for certain compared instruments. Please refer to the notes below for important disclosures. Potential Donors should consult their own tax advisors before contributing.

Calculate Charitable Income Tax Deduction Please enter information belowStart over



(enter age as of nearest birthday on date of Trust contribution)

*REQUIRED

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Summary of input parameters

Date of Contribution Nov 2019
Number of Income Beneficiaries 0
Ages of Individual Income Beneficiaries 0
Applicable Federal Section 7520 Rate data

Compare with:

Note: Charitable Gift Annuities are limited to a maximum of two income beneficiaries.

Compared pooled income fund

%

Enter a percentage rate between 0 and 100

Note: As determined pursuant to applicable Treasury regulations. Contact administrator of compared pooled income fund to provide.

Compared charitable remainder unitrust

%

Enter a percentage rate between 5 and 50

Note: Permissible unitrust percentages for charitable remainder unitrusts (CRUTs) are limited to a range of 5-50%. At funding, the present value of a CRUT’s charitable remainder interest as determined in accordance with the Treasury regulations must equal at least 10% of trust net assets, which further restricts allowable unitrust percentages based on the age and number of CRUT income beneficiaries.

Compared charitable remainder annuity trust

%

Enter a percentage rate between 5 and 50

Note: Permissible annuity percentages for charitable remainder annuity trusts (CRATs) are limited to a range of 5-50%. At funding, the present value of a CRAT’s charitable remainder interest as determined in accordance with the Treasury regulations must equal at least 10% of trust net assets, which further restricts allowable annuity percentages based on the age and number of CRAT income beneficiaries.

Note: CRATs are generally subject to the requirement that, at inception, the probability of the CRAT exhausting its assets by the end of the trust term does not exceed 5%, based on a specified calculation methodology. This “probability of exhaustion” test does not apply to CRATs whose organizational documents provide for early termination of the trust (and the immediate transfer of all trust net assets to the charitable beneficiary) before the payment of any distribution that would cause the value of the trust corpus, when multiplied by a specified discount factor, to be less than 10% of the CRAT’s net asset value at inception.

Compared charitable gift annuity

%

Enter a percentage rate between 0 and 100

Note: Contact sponsoring charity to determine currently available rate for an immediate-pay Charitable Gift Annuity (CGA) with annuitant age(s) corresponding to the income beneficiary age(s) indicated above. Upon funding, the present value of a CGA’s charitable remainder interest as determined in accordance with the Treasury regulations must equal at least 10% of the contribution amount, which restricts allowable annuity percentages based on the age and number of CGA income beneficiaries.

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Your Potential Charitable Deduction (percentage of contribution value)

U.S. Legacy Income Trusts Compared Pooled IncomeFund ComparedCharitable RemainderUnitrust ComparedCharitable RemainderAnnuity Trust ComparedCharitable GiftAnnuity
< 3 Yrs of History 3-Yr High Return 6.0% Unitrust Percentage 6.0% Annuity Percentage 5.1% Gift Annuity Rate
0.0 %
0.0 %
0.00 %
0.00 %
0.00 %
Change in potential deduction by replacing with Legacy Income Trust contribution
0.00 %
0.00 %
0.00 %
0.00 %

N/A represents that the compared planned-giving instrument is not allowable using the input parameters specified, because one or more requirements for qualification (including 10% minimum initial value of charitable remainder interest (for CRUTs, CRATs and CGAs), minimum/maximum annual distribution rate (for CRUTs and CRATs), 5% probability of exhaustion test (for CRATs without qualifying early termination provisions) and/or maximum of two income beneficiaries (for CGAs)) are not met.

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Important Information

The percentage of contribution value indicated above applies to a U.S. individual taxpayer contributing property to a Trust in 2019, and reflects applicable federal guidelines for determining the deductibility of contributions to a pooled income fund prior to completion of the fund’s third tax year. Ages of individual income beneficiaries are based on their nearest birthday as of the date of contribution. The itemized federal income tax deduction available to individual taxpayers in the tax year of contribution for qualified charitable gifts to public charities is generally limited to not more than 60% of the taxpayer’s federal adjusted gross income (AGI) for cash contributions, 50% of the donor’s AGI for gifts of appreciated property for which the Donor elects to base the charitable deduction on the fair market value of the property less the amount of the property’s appreciation from cost or other tax basis, and 30% of the donor’s AGI for other gifts of appreciated property, with the balance carried forward for up to five years after the year the contribution is made. In addition to the federal income tax deduction for qualified charitable contributions, 31 states and the District of Columbia permit, subject to applicable limitations, individual resident taxpayers to deduct or receive a tax credit for qualified gifts to charity. See “Tax Considerations – Charitable Income Tax Deductions” in the Trusts’ Information Statements for additional information.

For each contribution to a Trust, the Trust’s Administrator will provide the Donor with a written acknowledgement of the contribution that will include a provisional calculation of the charitable remainder portion of the Donor’s contribution for purposes of determining the Donor’s federal income tax deduction. Each Donor is responsible for reviewing and confirming the calculation with his or her own tax advisors.

This calculator is provided for illustrative purposes only and is not intended to provide, and should not be construed as providing, legal or tax advice. Each prospective Donor to a Trust should consult his or her own tax advisors with respect to the federal, state, local, and non-U.S. tax implications of a contribution to a Trust.

Important Information

This calculator is provided for illustrative purposes only and is not intended to provide, and should not be construed as providing, legal or tax advice. Each prospective Donor to a Trust should consult his or her own tax advisors with respect to the federal, state, local, and non-U.S. tax implications of a contribution to a Trust.

Important Information

The charitable deduction percentages indicated above are for a U.S. individual taxpayer making a current contribution of property to a Trust and/or the compared planned-giving instruments, and reflect applicable Treasury regulations and other federal tax guidance currently in effect. Ages of individual income beneficiaries are based on their nearest birthday as of the date of contribution. Indicated charitable deduction percentages for compared charitable remainder unitrusts, charitable remainder annuity trusts and/or charitable gift annuities are based on the highest of the Federal Section 7520 rates in effect for the current and two preceding months (resulting in the highest allowable charitable deduction), and assume that distributions are paid to income beneficiaries on a monthly basis for life, beginning one month after funding. The itemized federal income tax deduction available to individual taxpayers in the tax year of contribution for qualified charitable gifts to public charities is generally limited to not more than 60% of the taxpayer’s federal adjusted gross income (AGI) for cash contributions, 50% of the donor’s AGI for gifts of appreciated property for which the Donor elects to base the charitable deduction on the fair market value of the property less the amount of the property’s appreciation from cost or other tax basis, and 30% of the donor’s AGI for other gifts of appreciated property, with the balance carried forward for up to five years after the year the contribution is made. In addition to the federal income tax deduction for qualified charitable contributions, 31 states and the District of Columbia permit, subject to applicable limitations, individual resident taxpayers to deduct or receive a tax credit for qualified gifts to charity. See “Tax Considerations – Charitable Income Tax Deductions” in the Trusts’ Information Statements for additional information.

For each contribution to a Trust, the Trust’s Administrator will provide the Donor with a written acknowledgement of the contribution that will include a provisional calculation of the charitable remainder portion of the Donor’s contribution for purposes of determining the Donor’s federal income tax deduction. Each Donor is responsible for reviewing and confirming the calculation with his or her own tax advisors.

This calculator is provided for illustrative purposes only and is not intended to provide, and should not be construed as providing, legal or tax advice. Each prospective Donor to a Trust should consult his or her own tax advisors with respect to the federal, state, local, and non-U.S. tax implications of a contribution to a Trust.