IRS Provides Much Needed Guidance to Individuals Making Recent Large Gifts

Posted on Jan 1, 2019

By Jeff Pannell, CPA, MST

Through recent proposed regulations on November 20, 2018, the IRS has noted that, for individuals who took advantage of the increased gift and estate tax exclusions from 2018 to 2025, there will be no claw back when current exemption levels are set to decrease after 2025.

In general, estate tax planners across the board felt that this proposed scenario would be the case but were relieved nonetheless to receive official IRS confirmation.  The proposed regulations are currently open for public comment.

The dollars at stake are enormous since the 2017 Tax Cuts and Jobs Act (TCIA) temporarily increased the basic exclusion amounts from $5 million to $10 million per person .  With inflation adjustments, the 2018 basic exclusion is $11.18 million and was, after 2025, set to revert to the 2017 level of $5 million as adjusted for inflation.

In summary, the planning mantra may very well be to take advantage of the current exemption while you can—and before it expires.

For more information on estate planning, please contact your Clark Nuber Tax professional or Jeff Pannell.

© Clark Nuber PS and Developing News, 2018. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Clark Nuber PS and Developing News with appropriate and specific direction to the original content.

Facebooktwittergoogle_pluslinkedinmailFacebooktwittergoogle_pluslinkedinmail

This article or blog contains general information only and should not be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services. Before making any decision or taking any action, you should engage a qualified professional advisor.

Posted by:

Media Contact

Melissa Takade
Director of Marketing
Clark Nuber
Phone: 425-454-4919
Contact Melissa

Blog Archives

  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013