The IRS recently enacted revenue procedure 2015-53 which updates rules in the tax code that are regularly adjusted due to inflation. Among the changes includes the following:
Gift Tax – Annual Exclusion
“For calendar year 2016, the first $14,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under §2503 made during that year.”
The annual gift tax exclusion will not increase 2016; it remains at $14,000. It has been at this level since 2013. It had previously been $13,000 in the years 2009 through and including 2012. Previous to that it had been $12,000 in years 2006 through and including 2008 and previous to that is had been $11,000 in years 2002 through and including 2005. The last time the annual exclusion was $10,000 (a figure long remembered by many clients) was in 2001.
Unified Credit Against Estate Tax
“For an estate of any decedent dying in calendar year 2016, the basic exclusion amount is $5,450,000 for determining the amount of the unified credit against estate tax under §2010.”
The exclusion increases $20,000 from $5,430,000 in 2015.
Aaron E. Futterman, CPA, Esq. is a partner in the law firm of Futterman & Lanza, LLP with offices in Smithtown, NY and clients throughout Suffolk, Nassau, Queens, Brooklyn, Bronx, Richmond, New York, Westchester and Rockland Counties. He concentrates his practice to Elder Law, Medicaid Planning, Medicaid Applications, Estate Planning, Probate, Estate Taxes, and Estate Administration