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2017 Federal Inflation Adjustments

Each year, certain federal estate, gift and generation-skipping transfer (GST) tax figures are subject to inflation adjustments.

Effective January 1, 2017, the annual exclusion amount for gifts per donee remains at $14,000. The annual exclusion amount for gifts made to a noncitizen spouse in 2017 is increased to $149,000, up from $148,000 in 2016.

The federal estate, gift and GST tax exemption amount for estates of decedents dying in 2017 and for cumulative lifetime gifts whenever made is increased to $5,490,000, up from $5,450,000 in 2016.

The special use valuation reduction limit for farmland and real estate used in privately held businesses for decedents dying in 2017 will be $1,120,000, up from $1,110,000 in 2016.

The portion of the estate tax that may be deferred at an interest rate of 2% per year, after the applicable exclusion amount is applied, on an estate's ownership interest in a farm or closely-held business, will be $1,490,000, up from $1,480,000 for 2016 (the so-called Section 6166 election).

The foreign gift reporting threshold for gifts from a nonresident alien or foreign estate to a U.S. person (other than an exempt Code Section 501(c) organization) will be $100,000; the foreign gift reporting threshold for gifts from foreign corporations and foreign partnerships to a U.S. person (other than an exempt Code Section 501(c) organization) will be $15,797 in 2017 (up from $15,671 in 2016).

© Copyright 2020 Murtha CullinaNational Law Review, Volume VI, Number 365

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About this Author

Lisa Staron, Murtha Cullina Law Firm, Trust and Estates Attorney
Associate

As an attorney in the Firm’s Trusts and Estates Department, Lisa Staron’s practice includes estate and tax planning, estate and trust administration, charitable giving and probate litigation.

Prior to joining Murtha Cullina, Lisa practiced in the areas of estate and tax planning, estate and trust administration, charitable giving and probate litigation. She has experience in the settlement of complex estates as well as family law and civil litigation.

She is a magna cum laude, Pi Sigma Alpha graduate of the University...

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