The Tax Cuts and Jobs Act increases the exclusion amount for estate and gift taxes.

Prior Law

Through December 31, 2017

For 2017, the estate and gift tax exclusion was $5,490,000 per individual. A surviving spouse may elect to include the deceased spousal unused exclusion amount, resulting in a total potential exclusion of $10,980,000 for the surviving spouse upon death.

New Law

Effective for tax years beginning after December 31, 2017

The Act doubles the base estate and gift tax exclusion amount from $5,490,000 to $10 million. The $10 million amount is indexed for inflation occurring after 2011 and is expected to be approximately $11.2 million in 2018 ($22.4 million for a surviving spouse electing to use the deceased spousal unused exclusion amount).

Commentary

The language in the Act does not mention generation-skipping transfers, but because the generation-skipping transfer tax exemption amount is based on the basic exclusion amount, generation-skipping transfers will also see an increased exclusion amount.

Written by: Matt Cantlon, CPA

Print Friendly, PDF & Email
Lance Campbell
Lance Campbell
I am the partner-in-charge of the Rochester, MN office. I provide tax services to individuals, businesses and agricultural clients. I also provide compilation services and am QuickBooks Certified ProAdvisor.

Your Name (required)

Your Email (required)

Your Message

Are you human?


T: 800.658.9077
E: info@hawkinsashcpas.com

Locations

Your Name (required)

Your Email (required)

Your Message

Are you human?


T: 800.658.9077
E: info@hawkinsashcpas.com

Locations