Estate, Gift and Generation Skipping Transfers Tax Exemptions 2017 Update

Federal Estate Tax

The estate tax exclusion for 2017 has been raised from

  • $5.45 million for individuals and $10.9 million for married couples in 2016
  • to $5.49 million for individuals and $10.98 million for married couples in 2017. (See IRC §2001)

The maximum estate tax rate applied to amounts exceeding the exclusion remains unchanged from 2016 at 40%. (See IRC §2010)

Federal Gift Tax

The annual gift tax exclusion remains unchanged from 2016 at $14,000.00. (See IRC §2503(b)(2))

The maximum gift tax rate for amounts exceeding the exclusion remains unchanged from 2016 at 40%. (See IRC §2502(a))

Lifetime gift exclusion for 2017 increases to $5.49 million from $5.45 million in 2016. (See IRC §2001)

Annual gift exclusions for gifts from U.S. citizens/U.S. residents to Non U.S. citizen spouses increases from $148,000.00 for 2016 to $149,000.00 for 2017. (See IRC §2503 and §2523)

Reporting threshold for reporting foreign gifts and/or inheritances remains the same for 2017 at $100,000.00.

Federal Generation-Skipping Transfers Tax

The maximum tax rate for generation skipping transfers remains unchanged at 40% and the exclusion amount increases to $5.49 million for 2017.

Miscellaneous

The foreign earned income exclusion increases from $101,300.00 for 2016 to $101,300.00 for 2017.

State Estate and Gift Tax

California abolished its estate tax in 2005 and currently does not impose a separate estate tax at the state level. Further, California does not have a separate gift tax. Accordingly, California residents are only subject to the federal estate tax. Several large states including New York, New Jersey, Illinois, Massachusetts and Ohio still impose a separate estate tax at the state level. 

Jerome Synold


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