IRS Announces 2019 GST, Gift and Estate Tax Limits Increase to $ 11.4 Million


IRS announces inflation-adjusted figures for 2019 for gift and inheritance tax exemption amounts.

The federal gift, estates and GST exemption amount (the exemption amount) is the total amount that an individual can transfer during his lifetime or at his death, without incurring tax on gifts, inheritances or generational leap transfers. The exemption amount is adjusted annually for inflation, which means that for people who exhausted their available exemption amount in 2018, the inflation adjustment of the 2018 exemption amount of 11,180 $ 000 will become available on January 1, 2019.

In 2019, the amount of the individual exemption will drop from $ 11,180,000 to $ 11,400,000 (an aggregate of $ 22,800,000 for a married couple) an increase of $ 220,000.

The 2019 annual federal gift tax exclusion amount will remain unchanged from its current amount of $ 15,000 per donee. Gifts to any recipient can be doubled if the gifts are shared with a spouse (which requires filing a federal income tax return). Unlike the amount of the exemption, the amount of the annual exclusion from gift tax is a “spend or lose” tax benefit. You can make annual exclusion donations to as many recipients as you want in a year, but you cannot carry forward the amount of the annual exclusion from donation tax to subsequent years.

The annual exclusion for gifts to a spouse who is not a U.S. citizen will increase to $ 155,000 in 2019.

For more details, please see IRS Tax Procedure 2018-57.

© 2021 Greenberg Traurig, LLP. All rights reserved. Revue nationale de droit, volume VIII, number 354

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