Federal Estate Tax Exemption for 2017
The Internal Revenue Service has announced in IRS Revenue Procedure 2016-55 that the federal estate tax exemption for 2017 will be $5,490,000. The IRS also announced the gift tax exclusion will remain at $14,000.
The IRS never makes these things easy. It would have been nice if the exemption had gone to $5,500,000 to make the math easier for us. But alas the IRS was bound to the strict inflation adjusting formula of the Internal Revenue Code. This formula adjusts for inflation applied to the $5,000,000 exemption since 2010.
The Rev Proc is found at https://www.irs.gov/pub/irs-drop/rp-16-55.pdf. This technically is not official because it has not yet been published in a formal Internal Revenue Bulletin. The full IRS announcement released on October 25, 2016, is found at https://www.irs.gov/uac/newsroom/in-2017-some-tax-benefits-increase-slightly-due-to-inflation-adjustments-others-are-unchanged. This announcement lists the slight increase in a number of inflation adjusted figures under the federal tax law.
By Kevin Staker