IRS Announces New Estate and Gift Tax Exemptions
November 21, 2014
In Revenue Procedure 2014-61, the IRS recently announced new tax changes that will be effective starting in 2015. The following are the more relevant changes in relation to estate planning and gifting:
- The estate and gift tax exemptions increased due to inflation from $5.34 million to $5.43 million.
- The estate and gift tax rate remains the same at 40%.
- The annual exclusion for gifts remains the same at $14,000 per person. This means that each person can give as many $14,000 gifts to as many people as he/she desires, without having to file a gift tax return, pay gift tax, or reduce any gift tax exemption.
Additional changes have been made in relation to income tax rates and deductions.
For a summary of the new changes please visit the IRS Website.
For a complete record of the new changes, please see Revenue Procedure 2014-61.