Figure 1 to paragraph (b)(2)-Formula for Determining Single Life Remainder Interest in Depreciable Property
Table 1 to Paragraph (b)(3)
Age | Annuity | Life estate | Remainder |
Factors from Table S-Based on Table 2010CM | |||
Interest at 3.2 Percent | |||
62 | 14.6131 | 0.46762 | 0.53238 |
Example. In 1972, B donates to Z University a remainder interest in his personal residence, consisting of a house and land, subject to a 20 year term interest provided for his sister. At such time the house has a value of $60,000, and an expected useful life of 45 years, at the end of which time it is expected to have a value of $10,000, and the land has a value of $8,000. The value of the portion of the property considered to be depreciable is $50,000 (the value of the house ($60,000) less its expected value at the end of 45 years ($10,000)), and this is multiplied by the fraction 20/45. The product, $22,222.22, is subtracted from $68,000, the value of the entire property, and the balance, $45,777.78, is multiplied by the factor .311805 (see § 25.2512-5A(c) ). The result, $14,273.74, is the value of the remainder interest in the property.
Figure 2 to Paragraph (e)(2)-Formula for Determining Two-Life Remainder Interest in Depreciable Property
26 C.F.R. §1.170A-12