In Revenue Procedure 2014-61, I.R.B. 2014-47 (Nov. 17, 2014), the IRS set forth certain inflation-adjusted tax items for 2015. The adjustments include the following, effective Jan. 1, 2015:
- The annual exclusion remains at $14,000 under IRC Section 2503.
- The first $147,000 (up from $145,000) of qualifying gifts to a non-citizen spouse aren’t included in the year’s total amount of taxable gifts under IRC Sections 2503 and 2523.
- The amount used to calculate the 2 percent portion for purposes of IRC Section 6166 is now $1.47 million (up from $1.45 million).
- For decedents dying in 2015, if the executor elects to use the special use valuation method under IRC Section 2032A for qualified real property, the resulting aggregate decrease in the property’s value of the qualified real property resulting from such election may not exceed $1.1 million (up from $1.09 million).
- The unified credit against gift and estate tax under IRC Sections 2505 and 2010 will be $5.43 million (up from $5.34 million).
- The GST tax exemption under IRC Section 2631 increases to $5.43 million (up from $5.34 million).