Increased Estate Tax Exemption for 2018

target-clipart-target-clipart-1Official numbers from Treasury will not be released until late October, but here are my projections for 2018 estate and gift tax exclusion amounts:

  • The Basic Exclusion Amount (IRC §2010(c)(3)) used to compute the Unified Credit Against Estate Tax will probably be $5,600,000; this would be an increase of $110k (or 2.75%) over 2017’s exclusion amount;
  • This Basic Exclusion Amount of $5,600,000  is equivalent to a Unified Credit of $2,185,800;
  • The Gift Tax Annual Exclusion amount (IRC §2503(b)) should increase to $15,000; this will be the first increase since 2013. The gift tax annual exclusion is rounded down to the nearest multiple of $1,000. Any guesses on how long until the next increase in the annual exclusion?

These predictions assume that Congress makes no changes to the estate and gift tax laws before the end of the year.

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Increased Estate Tax Exemption for 2017

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Official numbers from Treasury will not be released until late October, but here are my projections for 2017 estate and gift tax exclusion amounts:

  • The Basic Exclusion Amount (IRC §2010(c)(3)) used to compute the Unified Credit Against Estate Tax will probably be $5,500,000; this would be an increase of $50k (or 0.9%) over 2015’s exclusion amount;
  • This Basic Exclusion Amount of $5,500,000  is equivalent to a Unified Credit of $2,145,800;
  • The Gift Tax Annual Exclusion amount (IRC §2503(b)) should stay at $14,000; we should see the next increase in the Gift Tax Annual Exclusion in 2018.

These predictions assume that Congress makes no changes to the estate and gift tax laws before the end of the year.

Increased Estate Tax Exemption for 2015

English: Dartboard with darts. Suomi: Tikkataulu.The Treasury Department will not give official numbers until November, but I have made the following projections for 2015 estate and gift tax exclusion amounts:

  • The Basic Exclusion Amount (IRC §2010(c)(3)) used to compute the Unified Credit Against Estate Tax will probably be $5,420,000; this would be an increase of $80k (or 1.5%) over 2014’s exclusion amount;
  • This Basic Exclusion Amount of $5,420,000  is equivalent to a Unified Credit of $2,113,800;
  • The Gift Tax Annual Exclusion amount (IRC §2503(b)) should stay at $14,000.

These predictions assume that Congress makes no changes to the estate and gift tax laws before the end of the year.