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Last Updated: 10/17/2008
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The annual gift tax exclusion will increase from $12,000 to $13,000 effective January 1, 2009, the Internal Revenue Service (IRS) has announced. The gift tax exclusion is the amount the IRS allows a taxpayer to gift to another individual without reporting the gift. The increase means that more can be given away for estate tax planning purposes. For example, a married couple with four children will be able to give away up to $104,000 in 2009 with no gift tax implications. The tax code permits the gift tax exclusion, which has remained at $12,000 since 2006, to rise when inflation would produce an increase of $1,000 or more. This year’s inflation figures pushed the amount above the next $1,000 threshold. For more on this and other inflation-adjusted tax figures for 2009, go to: http://www.irs.gov/newsroom/article/0,,id=187825,00.html For more from ElderLawAnswers on estate taxation and gifts, click here. |
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