The IRS has announced that the estate and gift tax exclusion will be raised from the current amount of $11.38 million to $11.58 million in 2020. This means that you will be able to leave $11.58 million to your heirs without your estate having to pay any federal estate or gift taxes. For a married couple the exclusion is $23.16 million.
The gift tax exclusion, in which each of you can give $15,000 per year to as many individuals as you may choose without having to file a federal gift tax return, will remain unchanged in 2020.
Signed into law late in 2017, the Tax Cuts and Jobs Act slashed the corporate tax rate from 35 percent to 21 percent.
Proponents of the law say it will stimulate the economy and create jobs, but how does it actually affect you? We should also note that everything we describe below will end after 2025, assuming legislators don’t vote to extend the cuts.
Continue Reading How Will the New Tax Law Affect You?
The IRS recently announced that in 2018 the unified credit against the estate tax will be raised to $5,600,000 and the annual exclusion for gifts be raised to $15,000 per donee.
For more information about estate taxes, please contact the attorneys at Gummer Elder Law.