The IRS has updated the applicable exclusion amount for estate and gift tax purposes and the generation skipping tax exclusion to $5,600,000 per person and $11,200,000 per married couple, for the calendar year 2018. - Rev Proc 2017-58, 2017-45 IRB ___ (Nov. 6, 2017)
The IRS has also raised the gift tax annual exclusion to $15,000 for the calendar year 2018. Rev Proc 2017-58, 2017-45 IRB ___ (Nov. 6, 2017)
President Trump’s Tax Reform Proposal
The following are just a few highlights from President Trump’s Tax Reform Proposal:
The House released its version of the proposal on November 2, 2017 (H.R. 1). Section 1601 of the House proposal doubles the exemption against estate, gift, and generation-skipping transfer tax effective January 1, 2018. Section 1602 of the House proposal would repeal the estate and generation-skipping transfer tax beginning January 1, 2024 but would also preserve the basis step-up even after those taxes are repealed.
On November 9, 2017, the Senate Finance Committee released a policy highlights fact sheet of its proposal. The Senate’s proposal would also double the exemption against estate, gift, and generation-skipping transfer tax.