The IRS has released their inflation adjusted numbers for 2014. The estate tax exclusion has gone up to $5.34m for 2014. The annual gift exclusion remains at $14,000. Below is the text straight from the IRS website:
2014 Inflation Adjustments
IR-2013-87, Oct. 31, 2013
WASHINGTON — For tax year 2014, the Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2013-35 provides details about these annual adjustments.
The tax items for tax year 2014 of greatest interest to most taxpayers include the following dollar amounts.
The tax rate of 39.6 percent affects singles whose income exceeds $406,750 ($457,600 for married taxpayers filing
A great article in Private Wealth magazine quotes yours truly! It is an article about the people that made large gifts at the end of 2012 to take advantage of the $5.12m federal gift tax exemption. Did any of them have second thoughts when the law was extended in the wee hours on January 1, 2013? The article talks about that and quotes me. Check it out here! -John
I recently saw a link to this New York Times article on volunteer travel. It’s not cheap to travel around the world and help people but, for people that can afford it, I can not imagine a better way to plan for your family’s future! Here’s the article for your reading pleasure. LINK
If President Obama’s 2014 budget is any prediction of the future the 2013 “permanent” estate tax law changes are not very permanent. Or, put another way, only politicians would call them permanent! I have read, in recent days, that President Obama is proposing going back to 2013 estate tax levels. That would mean a $3.5m exemption and a 45% tax rate. Read more on this web site HERE.