IRS announces bigger estate and gift tax exemption for 2025

Personal finance

Momo Productions | Digitalvision | Getty Images

The Internal Revenue Service has announced a higher estate and gift tax exemption for 2025.

The “basic exclusion amount” rises to $13.99 million per person in 2025, up from $13.61 million in 2024, the agency said Tuesday. The exemptions apply to tax-free transfers during life and at death.

The IRS also boosted figures for dozens of other provisions, including federal income tax brackets, long-term capital gains tax brackets and eligibility for the child tax credit, among others.  

More from Personal Finance:
Tax brackets may increase after 2025. It could affect your brokerage account
Buying a home? Here are key steps to consider from top-ranked advisors
Trump’s tax cuts could expire after 2025. How advisors are preparing

After 2025, the higher estate and gift tax exemption enacted by former President Donald Trump will sunset without action from Congress. If the provision expires, the exclusion will revert to 2017 levels, adjusted for inflation. The Tax Cuts and Jobs Act doubled the exemption to $11.18 million in 2018, according to the Tax Policy Center.


Articles You May Like

CFPB takes aim at ‘bait-and-switch’ credit card rewards — consumers forfeit about $500 million worth each year
Biggest banks sue the Federal Reserve over annual stress tests
More than 900 American Airlines flights delayed after glitch briefly grounded planes
Number of millennial 401(k) millionaires jumps 400%: Here’s what it takes to reach seven-figure status
Why the ‘great resignation’ became the ‘great stay,’ according to labor economists

Leave a Reply

Your email address will not be published. Required fields are marked *