IRS Issues Its Annual Inflation Adjustments
The IRS issued its annual inflation adjustments on October 25, 2016 through the publication of Revenue Procedure 2016 – 55. A number of tax provisions have been adjusted for inflation, including the applicable exclusion amount for estate taxes which has increased to $5,490,000 for deaths in 2017 from $5,450,000 for deaths in 2016. The annual exclusion amount for gifts remains at $14,000 per donee.
The standard deduction for married filing jointly increases to $12,700 for 2017, up $100 from 2016. For single taxpayers and married individuals filing separately, the standard deduction rises to $6,350 in 2017, up from $6,300 in 2016. For heads of households, the standard deduction will be $9,350 in 2017, up from $9,300 in 2016.
A full copy of Revenue Procedure 2016 – 55 can be found at https://www.irs.gov/pub/irs-drop/rp-16 – 55.pdf.
DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.