NCF Product Reference Guide

  CGA *
Charitable Gift Annuity		 CBS**
Charitable Installment Bargain Sale
Description
  • Provides tax-favored, lifetime fixed income for one or two individuals
  • Provides tax-favored, fixed installment payments for a specified number of years
  • Term of years payout to client and/ or beneficiaries (up to 25 years)
Payout Options
  • Immediate or Deferred
  • Flexible Deferred (payments can begin anytime after 1 year)
  • Immediate or Deferred
  • Flexible Deferred (payments can begin anytime after 1 year)
Income Tax Deduction
  • Immediate tax deduction for current year with 5 year carry forward, if needed
  • Immediate tax deduction for current year with 5 year carry forward, if needed
Capital Gain Reduction
  • A portion of the gain is eliminated
  • Remainder amortized over life of income stream
  • A portion of the gain is eliminated
  • Remainder amortized over life of income stream***
Taxable Estate Reduction
  • Asset is removed from estate (one life or married couple)
  • If 2nd annuitant is not spouse, asset is partially removed from the estate
  • Gift portion of asset is removed from estate
  • Only present value of future income payments is included in estate

IRC §501(m)(5) * IRC §453 and 26 CFR §1.1011-2 * When transferring publicly traded securities, remainder of gain must be recognized in year of sale. Both products are not available in all states. Not FDIC insured or insured by any federal or state government agency This is educational information and is not intended to be legal or tax advice. Individuals should seek tax, legal or financial advice from an independent professional advisor. 103 Continental Place · Suite 200 Brentwood, TN 37027 800-535-2601 · www.natcf.org