IRS Announces Inflation Adjustments for 2017
The IRS recently issued Revenue Procedure 2016-55, which detailed annual adjustments to many key figures for tax computations for tax year 2017. Below is a partial list, including items of interest to taxpayers:
- The lifetime exemption for estate and gift tax will be raised from $5,450,000 to $5,490,000. This will allow married couples employing appropriate planning to shelter almost $11 million in assets from estate tax. The annual exclusion for gift tax will remain $14,000 per person.
- The top individual tax rate (39.6%) will kick in for incomes above $418,400 for single filers and $470,700 for married couples filing jointly.
- The personal exemption ($4,050) is unchanged, but phase-out is adjusted to begin at adjusted gross income of $261,500 ($313,800 for married couples filing jointly). Complete phase-out occurs at $384,000 ($436,300 for married couples filing jointly).
- The standard deduction for personal income tax will be increased by $100, to $12,700 for married couples filing jointly.
Our attorney are up-to-date with the new requirements. If you have any questions about these new guidelines or any other tax issues, please feel free to contact one of our attorneys.