Dean Mead’s Tax Department handles tax planning issues for businesses and individuals. The attorneys in our department have extensive experience in a full range of…
As predicted, the gift tax annual exclusion amount will be increased from $13,000 in 2012 to $14,000 in 2013. The IRS announced the change today. Below is the relevant excerpt from Rev. Proc. 2012-41 that will be published in the Internal Revenue Bulletin on November 5.
.19 Annual Exclusion for Gifts.
(1) For calendar year 2013, the first $14,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year.
The cost of living adjustment will be small solace to taxpayers if Congress fails to take action on the scheduled drop in the lifetime gift tax exemption from $5,120,000 to $1,000,000 for 2013.