[ad_1]
2025 estate tax exemption and lifetime gift tax changes
The Internal Revenue Service has announced a higher estate and gift tax exemption for 2025.
The “basic exclusion amount” rises to $13.99 million per person in 2025, up from $13.61 million in 2024, the agency said Tuesday. The exemptions apply to tax-free transfers during life and at death.
The IRS also boosted figures for dozens of other provisions, including federal income tax brackets, long-term capital gains tax brackets and eligibility for the earned income tax credit, among others.
More from Personal Finance:Tax brackets may increase after 2025. It could affect your brokerage accountBuying a home? Here are key steps to consider from top-ranked advisorsTrump’s tax cuts could expire after 2025. How advisors are preparing
After 2025, the higher estate and gift tax exemption enacted by former President Donald Trump will sunset without action from Congress. If the provision expires, the exclusion will revert to 2017 levels, adjusted for inflation. The Tax Cuts and Jobs Act doubled the exemption to $11.18 million in 2018, according to the Tax Policy Center.
[ad_2]
Source link
#estate #tax #exemption #lifetime #gift #tax