Inheritance and gift tax rate updated in 2022 | Tucker Arensberg, PC

In Tax Proceedings 2021-45 (RP-2021-45 (irs.gov)), the Internal Revenue Service announced annual inflation-adjusted tax rates for 2022, including provisions regarding duties inheritance and donation.

Starting in 2022, the annual exclusion for donations will be $ 16,000 per donor, up from $ 15,000 in recent years.

The unified inheritance and gift tax credit in 2022 will be $ 12,060,000, up from $ 11.7 million in 2021. This, of course, could remain subject to change.

As we have discussed in more detail here, Congress previously proposed, as part of the Build Back Better Act, to speed up the expiration of the exemption until January 1, 2022 and to halve the exemption to an adjusted amount of $ 5,000,000, or approximately $ 6,030,000. It is important to note that this provision has been removed and was not included in the most recent versions of the Build Back Better Act legislation passed by the House on November 19, 2021. However, it could be reinserted as the draft law will be submitted to the US Senate and travels through the reconciliation process.

Clients are strongly encouraged to continue to monitor developments in the estate and gift tax exemption situation and its impact on estate planning.


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