Cummings & Lockwood

IRS Announces 2021 Estate and Gift Tax Inflation Adjustments

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November 17, 2020

In Revenue Procedure 2020-25, the IRS announced the inflations adjustments for the estate and gift tax exemptions and annual exclusions.  Absent further legislation passed by Congress and the Biden administration, the following numbers will apply for 2021:

 

       2020

      2021

Gift Tax Exemption

$11,580,000

$11,700,000

Estate Tax Exemption

$11,580,000

$11,700,000

Annual Exclusion

$       15,000

$       15,000

Annual Exclusion for Non-Citizen Spouse

$     157,000

$     159,000

6166 “2-Percent Portion”

$  1,570,000

$  1,590,000