Charitable Remainder Trust Rental Calculator

CRTs can defer gains. This calculator sizes benefit.

Property value

Cost basis

Effective tax rate %

Annual payout %

Term years

Deferred capital gain tax

$425,000

Charitable deduction

$896,215

Annual payout

$125,000

How the math works

Gain = value − basis. Deferred tax = gain × rate. Remainder to charity ~ value × (1 − payout)^term. Annual = value × payout.

On $2.5M property ($800k basis, $1.7M gain): $425k deferred. 5% payout × 20 years: $125k/yr income. Remainder ~$895k charitable deduction. Powerful for appropriate profile.

How to Use

Enter property value.
Enter cost basis.
Enter tax rate %.
Enter annual payout %.
Enter term years.
Read charitable deduction and deferred tax.

Frequently Asked Questions

CRT structure?

Transfer property to irrevocable trust. Trust sells without current tax (tax-exempt). Pays income stream to donor for term (CRAT) or fixed % (CRUT). Remainder to charity. Donor gets charitable deduction at transfer (PV of remainder to charity).

When use?

Highly appreciated property with low basis. Donor wants income stream. Charitable inclination. No heirs needing the asset. Retirement planning. Post-retirement scenario where current income more valuable than principal.

Tradeoffs?

Principal goes to charity at term (often >50% of value). Income stream typically below unrestricted use of sale proceeds. Irrevocable (can't undo). Complex administration, CPA-intensive. Right for specific donor profile; not universal.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.