The Internal Revenue Service has released Revenue Procedure 2024-40, which specifies the annual inflation adjustments for tax year 2025.
Here are some of the highlights:
- • Gift, estate and generation-skipping transfer tax exemption amounts: $13.99 million (up from $13.61 million).
- • Annual gift tax exclusion (IRC Section 2503): $19,000 (up from $18,000).
- • Top (37%) income tax bracket for estates and trusts: $15,650 (up from $15,200).
- • Zero percent tax bracket for capital gains for estates and trusts: $3,150
- • Annual exclusion gift to non-citizen spouse: $190,000 (up from $185,000).
