New Limits on Estate Taxes & Gift Tax exemptions
The American Taxpayer Relief Act of 2012 (ATRA) increased the amount of an estate that is not subject to taxation, known as the exemption, to $5 million. The exemption amount is indexed each year for inflation. For the 2016 tax year, the estate tax exemption is $5.45 million. It is set to increase to $5.49 million on 2017.
If you’ve been considering such a strategy, you may need to act soon to take advantage of current tax provisions in the event the rules change.
If you are filing a request for an extension of time to file an estate or gift tax return, remember that the request must go to the Cincinnati Service Center, even if you file your income or other tax returns elsewhere.