IRS Announces Indexed Tax Items for 2023

The IRS has announced the values for 2023 of various tax items that are indexed annually for inflation. In general, values have been adjusted upward about 7.0%. Of particular interest to gift planners, the unified gift and estate tax exemption amount will be $12,920,000 ($25,840,000 per couple) in 2023, an increase from $12,060,000 ($24,120,000 per couple). So, next year a couple that takes advantage of the portability of unused estate tax exemption will be able transfer nearly $26 million to heirs without triggering any federal estate tax.

Gift Planning and the Inflation Reduction Act of 2022

Bernie Sanders has been the butt of some memes, but the picture above may summarize the exhaustion around the Inflation Reduction Act of 2022. Senator Sanders was taking a break from the Vote-a-Rama during passage of the bill in the Senate. The measure passed the Senate and House and was signed into law by President Biden on August 16, 2022. The legislation represents a major shift in healthcare, climate, and taxation policy. What, if anything, does the bill mean for gift planners? Directly, it doesn’t mean much. Indirectly, the law may affect some donor behavior, which is something gift planners should consider.

Money Goes to Money: Investment Results for 2021

It is a bit of a paradox that while Americans were battling the second year of an historic pandemic in 2021, the stock market was booming, and the economy was roaring back to life. Certainly, demand for goods and services was exploding, as vaccines rolled out and millions returned to work. Unfortunately, however, with multiple waves and variants of COVID-19, the numbers of cases and hospitalizations shot back up to levels not even seen in 2020. Eventually, those numbers went down – only to rise again, in time, and reach even higher levels. And yet, despite a constant stream of supply chain disruptions, despite monumental labor shortages, and against a backdrop of hundreds of thousands of deaths, the U.S. economy managed to bounce back.

IRS Announces Indexed Tax Items for 2022

The IRS has announced the values for 2022 of various tax items that are indexed annually for inflation. In general, values have been adjusted upward about 3.0%. Of particular interest to gift planners, the unified gift and estate tax exemption amount will be $12,060,000 ($24,120,000 per couple) in 2022, an increase from $11,700,000 ($23,400,000 per couple). For the first time since 2018, the annual gift tax exclusion will also increase, from $15,000 per person this year to $16,000 per person next year. Also of interest, the standard deduction in 2022 will increase to $25,900 for married couples filing jointly and to $12,950 for single filers, an increase of $800 and $400, respectively. Taxpayers who are 65 or older will qualify for an additional $1,400 in standard deduction on top of that (an additional $1,750 if single and not a surviving spouse). See Revenue Procedure 2021-45 (https://www.irs.gov/pub/irs-drop/rp-20-45.pdf) for complete details, including all federal income tax...