Estate Tax, Gift Tax and Generation Skipping Transfer Tax Exemptions Raised to $13,610,000 in 2024

Estate Tax, Gift Tax and Generation Skipping Transfer Tax Exemptions Raised to $13,610,000 in 2024.

The IRS has announced in Revenue Procedure 2023-34 that in 2024 the exemptions for the Estate Tax, Gift Tax and Generation Skipping Transfer Tax will be raised to $13,610,000. These exemptions are raised for inflation from $10,000,000 since 2010. The exemption had been $5,000,000 indexed for inflation since 2010. However, the 2017 Tax Act doubled the exemption to $10,000,000 indexed for inflation.

The exact number is found in Section 3.41 of the Revenue Procedure. The text states:

.41 Unified Credit Against Estate Tax. For an estate of any decedent dying in calendar year 2024, the basic exclusion amount is $13,610,000 for determining the amount of the unified credit against estate tax under § 2010.

The IRS also announced in Section 3.43 of Revenue Procedure 2023-34 that the Annual Exclusion for Gifts in 2024 is raised to $18,000. This amount is also indexed to inflation, but is rounded down to the nearest $10,000. The text states:

.43 Annual Exclusion for Gifts.
(1) For calendar year 2024, the first $18,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year.

By Kevin Staker of Staker|Johnson Law.