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AMBRECHT & BRITTAIN, LLP

Inflation Adjustments
For 1999 and Following

 

Following are various adjustments pertain to estate and gift taxes called for under the Taxpayer Relief Act of 1997, with adjustment for inflation as determined by the IRS in approximately December for the following year. Chart has also been adjusted to confirm to the Economic Growth and Tax Relief Reconciliation Act of 2001.

 
Year
1997 & Prior
1998
1999
2000
Annual Exclusion [$1,000 for each 10% CPI]

$10,000

$10,000

$10,000

$10,000
Annual Exclusion for Gifts to Non-Citizen Spouse

$100,000

$100,000

$101,000

$103,000
GST Exemption [$10,000 for each 1% CPI]

$1,000,000

$1,000,000

$1,010,000

$1,030,000
IRC 6166 2% Interest Amount --Asset Value [$10,000 of asset value for each 1% CPI]

N/A
[Amount measured against tax]

$1,000,000

$1,010,000

$1,030,000
IRC 6166 2% Interest Computes to Tax of

$153,000
[at 4%]

$337,200

 

 
IRC 2032A Amount of Aggregate Decrease in Value of Property [$10,000 for each 1-1/3% CPI]

$750,000

$750,000

$760,000

$770,000
Exclusion Amount

$600,000

$625,000

$650,000

$675,000


Year
2001
2002
2003
2004
Annual Exclusion [$1,000 for each 10% CPI]

$10,000

$11,000

 

 
Annual Exclusion for Gifts to Non-Citizen Spouse

$106,000

$110,000

 

 
GST Exemption [$10,000 for each 1% CPI]

$1,060,000

$1,110,000

 

 
IRC 6166 2% Interest Amount --Asset Value [$10,000 of asset value for each 1% CPI]

$1,060,000

$1,110,000

 

 
IRC 6166 2% Interest Computes to Tax of

 

 

 

 
IRC 2032A Amount of Aggregate Decrease in Value of Property [$10,000 for each 1-1/3% CPI]

$800,000

$820,000

 

 
Exclusion Amount

$675,000

$1,000,000

$1,000,000

$1,500,000

This page updated January, 2002.

 


The contents of this publication are for information purposes only and are not meant nor should be construed to be legal advice. Note, also, the date of the document. Laws are constantly changing, and are subject to differing interpretations. We, therefore, urge you to do additional research or to contact your own legal or tax counsel before acting on the information contained herein.

This page: www.taxlawsb.com/resources/estates/inflatn.htm