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2017 Estate, Gift, and Fiduciary Income Tax Inflation Adjusted Amounts Released

November 10, 2016
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The Treasury Department has recently released its annual list of inflation adjusted rates, exemptions, and exclusions for the year 2017.  Highlights of the amounts related to estate, gift, and fiduciary taxation are as follows:
  • The highest income tax rate applicable to estate and trust income (39.6%) will apply to taxable income in excess of $12,500, up $100 from 2016;
  • The Gift Tax annual exclusion remains unchanged at $14,000;
  • The Gift Tax Annual exclusion for gifts to a non-resident alien spouse increases $1,000 to $149,000;
  • The lifetime Estate, Gift, and Generation Skipping Tax exclusions for transfers or deaths in 2017 increase to $5,490,000 from $5,450,000;
  • The reporting threshold for a US person receiving gifts or bequests from a non-resident alien individual or foreign estate remains at $100,000 while the same threshold for gifts from foreign partnerships or corporations increases by $126 to $15,797;
  • The limit on the reduction in estate tax value for certain real property interests of a decedent increases in 2017 by $10,000 to $1,120,000; and
  • The portion of estate taxes which are eligible for a reduced interest rate when an estate consists of qualified closely held businesses increases by $10,000 to $1,490,000.
Please contact your Citrin Cooperman representative to discuss how these figures or the proposed changes to gift tax valuations which may become effective on January 1, 2017 may have an impact on your estate planning goals.