Pooled Income Fund: Data Input Fields

[Kathleen Reynolds]

#4664

Enter the appropriate values into the data input fields for this calculation model.

• Transfer Date: Enter 1 to 12 to indicate the month for the transfer date and then enter the year of the transfer (mm/yyyy). If you enter a two-digit number such as 90, the program will automatically enter it as 1990. See Transition Period Notes.
• Value of Property: Enter the fair market value of the property contributed by the donors.
• Highest Rate of Return for Three Preceding Years: Enter the highest rate of return earned by the fund in any one of the three years preceding the year of the contribution.
• Payment Years: Enter the duration of the trust, for a period not in excess of 20 years. Valid entries are 1-20. This data input field will only be available when Term is chosen as the Calculation Type.
• Lives: Enter the number of lives (up to five) that will be used to determine the distribution. The Pooled Income Fund handles Life scenarios only.
• Ages: This data input field is only available when Life is chosen as the Calculation Type. Use a value from 0 to 109 to indicate the age of the person whose life is being used to measure the term of the trust. Enter the age of this person(s) using the birth date which is nearest to the transfer date.
• Income Tax: The Tax Cut and Jobs Act of 2017 sunsets in 2026. Indicate whether or not you wish to assume that the income tax provisions of that act will sunset.
• Cost Basis: Enter the amount of basis for the asset being placed in the trust.
• Charity Type: Choose 50%, 30%, or 20%. All qualified non-profit organizations will fit within one of these types (IRS Publication 78).
• Capital Gains Rate: Enter the income tax rate that applies to capital gains property.

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IMPORTANT NOTE: Mortality table 2010CM was included in version 2022.10 of the software. Table 2010CM reflects longer life expectancies than table 2000CM, and will generally result in life interests worth more, while remainder interests worth less. Once finalized, the new 2010CM table will go in effect on the first day of the first month after regulations have been finalized. If you have a prior version of the software, its advised to update to the latest version before the transition period ends (see below).

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