2016 Tax Inflation Adjustments Announced

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As announced in Rev. Proc. 2015-53, IRS has announced that the following inflation-adjusted amounts are effective January 1, 2016:

  • Annual exclusion from gift tax remains at $14,000 per donee.
  • Annual exclusion from gift tax for gifts to a non-citizen spouse increases to $148,000 ($147,000 in 2015).
  • Gift, estate and generation-skipping transfer tax exclusion amount increases to $5.45 million ($5.43 million in 2015).
  • Highest income tax brackets begin at taxable income of:
    • $466,950 (married filing jointly)
    • $233,475 (married filing separately)
    • $441,000 (heads of households)
    • $415,050 (unmarried other than surviving spouses and heads of households)
    • $12,400 (estates and trusts).

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