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Under the current law, the Tax Cuts and Jobs Act of 2017, individuals can transfer up to $13.61 million to their heirs without triggering federal estate taxes, while married couples can shield up to $27.22 million. But, this historically high exemption is slated to sunset on December 31, 2025, reverting to the pre-2018 level.
As of 2024, the federal estate tax exemption has reached a historic high of $13,610,000 per individual. This elevated threshold allows individuals to transfer substantial assets to their heirs without incurring estate taxes.
15 cze 2023 · Elevated Gift Tax Exclusions Will Sunset after 2025. The 2017 Tax Cuts and Jobs Act (TCJA) nearly doubled the lifetime estate and gift tax exemption from $5.6 million to $11.18 million for individuals, indexed for inflation after 2018.
5 dni temu · This exemption amount will increase one last time to adjust for inflation for tax year 2025, which is predicted to be $13.99 million for individuals and $27.98 million for married couples. However, this increased exemption is sunsetting at the end of 2025, absent any legislative action prior to the end of 2025. The sunset will reduce the estate ...
14 sie 2023 · Like several TCJA provisions, the higher estate tax limit is due to sunset in 2025. Barring congressional action, the exemption amount will return to about $6.8 million, adjusted for inflation, in 2026. Similarly, the current 40% maximum gift and estate tax rate will increase to 45%.¹.
8 lis 2023 · The increased estate and gift tax exemption, which is currently $12.92 million per person and increased to $13.61 million per person for 2024, is set to sunset at the end of 2025. As a result, the exemption will drop back to the prior Tax Cuts and Jobs Act (TCJA) level of $5 million, adjusted for inflation.
