Saturday, February 12, 2022

New figures

 A new year brings updates in dollar limits. The IRS figures first: 

"Annual exclusion" for gifts               $16,000 

Estate/gift tax exemption equivalent  $12,060,000 

Recall that the per-year gift exemption relates to reporting requirements only. If one single person gives another single person $20,000, this exceeds the per-year exclusion, but does not trigger a gift tax liability so long as the exemption equivalent is not exceeded. What it usually requires is the filing of a gift tax report using Form 709. See the IRS instructions for that form. 

For persons dying in 2022, the new figures as certified by the Michigan Department of Treasury are: 

The first two figures differ depending on whether there are children from a previous marriage. 

Tax and planning - 2024

The IRS has issued Bulletin 2023-48, announcing its annual inflation adjustments for tax year 2024. We have posted an updated Tax calculator...