IRS Announces 2019 Inflation Adjustments

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IRS has issued the 2019 amounts for inflation-adjusted tax items in Rev. Proc. 2018-57. The relevant amounts for transfer taxes for events occurring in the 2019 calendar year are:

  • Unified credit. The Code Sec. 2010 basic exclusion amount used to determine the unified credit increased to $11,400,000 for 2019 (up from $11,180,000 for 2018). As a result, the unified credit for decedents dying and gifts made in 2019 is $4,505,800.

  • Annual exclusion for gifts. The Code Sec. 2053(b) annual gift tax exclusion remains at $15,000 for 2019. In addition, the first $155,000 of gifts to a noncitizen spouse in 2019 are not included in the donor’s annual amount of taxable gifts under Code Secs. 2503(b) and 2523(i)(2)(up from $152,000 in 2018).

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