An Overview

Valuation Tables

Note: New valuation tables were issued in 2009. See heading below for effective date and transitional rules.

The value of an annuity, an interest for life or term of years, or a remainder or a reversionary interest, is valued for most income, estate, gift, and generation-skipping transfer tax purposes using the following valuation tables and the current interest rate for the month in which the valuation date occurs. See Q 922. The Section 7520 interest rate for each month is published at www.TaxFactsOnline.com. For purposes of these tables, round the age of any person whose life is used to measure an interest to the age of such person on his birthday nearest the valuation date.

Selected single life and term certain factors are provided here. [See Appendix A in Tax Facts on Investments for selected unitrust tables.] Both the single life and term certain tables provide factors for remainder interests that can be converted into an income factor or an annuity factor. A remainder interest is converted into an income factor by subtracting the remainder factor from 1. An income factor is converted into an annuity factor by dividing the income factor by the appropriate interest rate for the month.