No. The annuity payments are considered purchase price payments with an “Annuity” amount. Therefore, for tax purposes, the Trust’s payments are not tax deductible as interest. Many attorneys and tax advisors have not heard of Private Annuity Trusts, or perhaps they may have heard of them but choose not to make them part of their everyday practice, primarily due to their relative complexities and niche market use.

Yes. A joint annuity, or second-to-die entitlement, would be set up in the Private Annuity Trust. In this case your spouse would not serve as a co-owner or joint Annuitant; however, he/she would receive the income payments at your death. These payments would continue until his/her death (or until the death of the second spouse).

Yes. No need to keep track each month- in January we will send you a total amount to aid in you tax preperations. We are the only non-profit, a therefor tax deductiable option for Rhode Islanders!

Contact us and we will fax you an informational packet along with a questionnaire to determine if a "PAT" is right for you.

Usually, the trustee is one of the Annuitant’s adult children. The adult child can be the trustee as well as the beneficiary. However, if the Annuitant does not have any children (or does not wish to use his/her children as the trustee), he/she may choose a relative, family friend or any type of professional trustee such as an attorney, accountant or financial planner to serve as the trustee. Neither the Annuitant nor his/her spouse can be the trustee of the trust.

No. In order for the Private Annuity Trust to comply with IRS regulations, it is imperative that the assets be placed into the trust first and then the trust would sell the asset.

Typically the IRS will allow you to write off 100% of your lease payments on a True or Fair Market Value (FMV) lease. Consult your accountant for specific application to your business.

Generally, yes. Keep in mind that your mortgage interest and real estate taxes will be deductible. A qualified real estate professional can give you more details on other tax benefits and liabilities.

A tax-sheltered annuity is a fund that allows you to accumulate tax-deferred cash for your retirement. Your TSA usually reduces your current taxable income. You may pay even less after you've retired because you may be in a lower tax bracket.

You can donate to the Trust either online (Click here) using our new credit card payment gateway facility or debit from your net banking account in India. Click here to see the list of credit cards accepted and net banking accounts. Or you can send a Rupee cheque or Draft in favour of "SSSMM Trust". Contributions are tax deductible under section 80G. Click here for further details.

IRAs, 401s or any type of qualified retirement plans cannot be sold through a Private Annuity without losing their tax-exempt status.

Yes. A Private Annuity Trust may cover more than one property. It is recommended that you set up the initial trust with provisions set aside for the other properties to be included at a later date. However, if the provisions are not set up prior to the sale of the remaining properties, an additional annuity contract must be created for the new property or properties. Each annuity contract will be a separate entity and the deferral periods may be different.

At the death of the Annuitant the income payments are passed to the surviving spouse (this only occurs in joint annuities). At the death of the 2nd spouse, annuity payments cease and are voided. The remains of the assets in the Trust will pass to the heirs/beneficiaries according to the provisions of the Trust. The beneficiaries may be paid out immediately, or may receive payments over a pre-specified period of time. The trust may be responsible for any unpaid taxes that remain.

The assets are completely removed from the Annuitant's taxable estate once transferred into and “sold” through the Private Annuity Trust. Because the transaction is considered a “sale” and not a “gift”, there are no gift taxes incurred.

When you sell your assets to the Private Annuity Trust you are receiving an annuity contract from the trust as payment. Since there is no exact determination of how many income payments you may receive in your lifetime, the IRS mandates that you make portions of the remaining tax payments as they are received by your income payments.

No. The Private Annuity Trust must be an unsecured obligation. The IRS does not allow this type of tax strategy if the annuity is secured. In essence, the trust cannot be secured by the underlying assets as a guarantee to the annuitant. The trustee bears the risk of ensuring that the Annuitant receives his/her earnings from the assets sold through the Private Annuity Trust. The Private Annuity Trust is as secure as the investments used to fund the trust.

No. The trustee is the person responsible for making the investment decisions of the Trust. While the Annuitant may make investment recommendations, it is ultimately the responsibility of the trustee to make prudent investment decisions regarding the Trust. The trustee should also take special precautions as to managing the asset portfolio in regards to tax efficiency. There is a possibility that the tax liability of the Trust will exceed the annuity payments that the Annuitant is to receive.

The next step is to contact NAPAT directly. NAPAT will then meet with you and your tax advisor and answer any questions that you may have. We will provide you with a detailed illustration of what your annuity payments might look like, and then go through and assist you in filling out an application and information form. Once the application is complete NAPAT will refer you to up to 3 attorneys who specialize in drafting PATs.

Yes. The Texas Heart Institute is a 501(c)3 organization. Gifts are deductible on federal tax returns subject to the limits allowed by the Internal Revenue Service. A copy of the letter documenting tax-exempt status is available from the Development Office. When you make a gift, the Development Office will provide you with the necessary documentation for tax purposes.

The individual donor must address his or her check directly to the Pennsylvania Breast Cancer Coalition. Donations of any kind will be acknowledged in writing by the PBCC. The donation cannot be given for a service. For example, the registration fee for the Pennsylvania Breast Cancer Coalition Annual Conference is not considered a tax-deductible donation because the donor is attending the conference, thus is receiving a service for his or her contribution. return to top

The National Kidney Foundation is a non-profit (501C 3 Corporation) so your donation may be tax deductible. Since each case is different, it is best to consult your tax advisor or accountant for details.

In certain cases, the cost of care may be tax deductible. Since individual situations vary, be sure to consult your accountant.

Since this is a mortgage and since it represents the acquisition debt on your property, under IRS publication 936, the interest you pay may be tax deductible; consult your tax advisor for more guidance. The interest you will pay is equally deductible as the interest you pay on your current loan. Of course it will. Unless you're currently a renter, paying a dollar in interest to get a thirty-cent tax deduction is a no-win game.

A percentage of your gift annuity can be deducted as a charitable contribution. A portion of the annual income received is also tax-free.