Gift Tax Consequences to Contributor Sample Clauses

Gift Tax Consequences to Contributor. When the Contributor makes a contribution to the Fund and retains a lifetime income interest, the Contributor makes a gift of the remainder interest in the donated property to CCS. The Contributor may take the gift tax charitable deduction in an amount equal to the actuarial present value of the remainder interest. Although the gift of the remainder interest to CCS does not create a gift tax liability, the contributor must still report the transaction, at the calculated discounted value, on the Contributor's gift tax return. If the Contributor designates an individual who is not the Contributor or the Contributor's spouse as the income beneficiary, either as a concurrent or consecutive beneficiary, such designation may create a gift subject to the gift tax based upon the actuarial value of the beneficiary's interest. Should the Contributor designate his or her U.S. citizen spouse as the income beneficiary, no gift tax consequences should result to the Contributor for the actuarial value of the spouse's income interest because the Contributor should be able to utilize the gift tax marital deduction under Code section 2523(g)(1). However, if the Contributor designates a non- U.S. citizen spouse as the income beneficiary, then the gift tax marital deduction does not apply; nevertheless, an annual gift tax exclusion amount of $155,000 (for 2019) is allotted for gifts to non-U.S. citizen spouses under Code section 2523(i). This annual gift tax exclusion for gifts to non-U.S. citizen spouses is adjusted for inflation each year. It is important to note that (a) the marital deduction is not available for a future income interest, and (b) based on the facts and circumstances, an election to treat the gift of the income interest as qualified terminable interest property ("QTIP") may be required. The Contributor may avoid creating a gift tax liability if the gift of the income interest designated in another individual (other than the Contributor's spouse) is a present income interest equal to or less than the annual per donee gift tax exclusion amount. Currently, the annual per donee gift tax exclusion amount is $15,000 (for 2019); however, this amount is adjusted for inflation each year. Additionally, the Contributor may avoid creating a gift tax liability by utilizing the unified gift and estate tax exemption of $11,400,000 (for 2019). This amount changes in accordance with congressional mandate. The Contributor may reserve the right, exercisable only by will, to t...