Projected Inflation-Adjusted Estate, Gift and GST Tax Exclusion Amounts for 2017 Now Available

Bryan Cave Leighton Paisner
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Based on the Consumer Price Index for the 12-month period ending August 31, 2016, Thompson Reuters Checkpoint has released their projected inflation-adjusted Estate, Gift, GST tax, and other exclusion amounts for 2017, as follows:

The unified estate and gift tax exclusion amount (gift and estate tax exemptions) for gifts made and decedents dying in 2017 will be $5,490,000 (up from $5,450,000 in 2016).

The generation-skipping transfer (GST) tax exemption for transfers made in 2017 will be $5,490,000 (up from $5,450,000 in 2016).

The gift tax annual exclusion amount for gifts made in 2017 will be $14,000 (the same amount as for gifts made in 2016, 2015, 2014 and 2013).

The annual exclusion for gifts to noncitizen spouses in 2017 will be $149,000 (up from $148,000 in 2016).

The special use valuation reduction limit for estate of decedents dying in 2017 will be $1,120,000 (up from $1,110,000 in 2016).

The portion of the estate tax that may be deferred on farm or closely-held businesses at an interest rate of 2% per year, after the applicable exclusion amount is applied, will be $1,490,000 (up from $1,480,000 for 2016).

The foreign gift reporting threshold for gifts from a nonresident alien or foreign estate to a U.S. person (other than an exempt Code Section 501(c) organization) will be $100,000; the foreign gift reporting threshold for gifts from foreign corporations and foreign partnerships to a U.S. person (other than an exempt Code Section 501(c) organization) will be $15,797 in 2017 (up from $15,671 in 2016).

The threshold in 2017 for an individual to be deemed a “covered expatriate” is an “average annual net income tax” of more than $162,000 (up from $161,000) for the five tax years ending before the date that the individual ceases to be a U.S. citizen or lawful permanent resident (i.e. green card holder).

The exclusion amount for the gross income of an individual for the mark-to-market deemed sale rules (which deem all of the property of an expatriate to be sold on the day before expatriation for its fair market value) will be $699,000 (up from $693,000 in 2016).

The foreign earned income exclusion amount in 2017 will be $102,100 (up from $101,300 in 2016).

Additional information on these and other projected tax related inflation-adjusted figures for 2017 can be found in the 2017 Inflation-Adjusted Figures Report.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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