Annual Exclusion For Gifts

[WhiteOleander]

Page 21-1 of TTB says that the annual exclusion for gifts for 2006-2007 is $12,000.00. I need to know what the exclusion will be in the next few years. I have not been able to find anything for the futures years. WIll it be the same?

Does anyone know?

[FEDUKE404]

Some assistance on the numbers

Page 21-1 of TTB says that the annual exclusion for gifts for 2006-2007 is $12,000.00. I need to know what the exclusion will be in the next few years. I have not been able to find anything for the futures years. WIll it be the same?

Does anyone know?

Citing from memory only, I seem to recall the amount increases by a factor each year related to government price indices, COLA, etc not unlike the way the federal standard deduction and personal exemptions change.

The kicker is the annual exclusion only changes when a new $1k threshold is reached. The "numbers" may show $12,000 one year, $12,333 the next year, and $12,999 the following year. Each of those years would maintain the same $12k exclusion. Only when the amount breaks a new threshold (such as $13,105) would the number then change from $12k to $13k.

My guess is it will be very difficult for you to find numbers too far out, especially with all of the anticipated changes in Washington in the reasonably near future.

FE.

[Corduroy Frog]

COLAs

Oleander, apparently this is one of those factors adjusted for inflation, rather than statutory changes like the Estate Tax Exclusion.

The inflation-adjusted numbers are pegged to annual inflation rates, similar to standard deduction changes and exemption amounts. I don't believe they are published more than a year in advance, allowing for each year's COLA to be known.

[WhiteOleander]

Ok thanks. I'll just tell my client to plan on the 12000.00 for the future years and when the new figures are released, I can update them then.

Leave it to the gov't to make it complicated. :>)