Call Us : 312.642.0006

Topel Forman News

Increases in Estate, Gift, and GST Exemptions and Exclusions for 2024

The IRS released the 2024 inflation-adjusted exemptions and exclusions for estate, gift, and GST tax in Rev. Proc. 2023-34 as follows:

  • The estate and gift exemption amount (currently $12.92 million) will increase to $13.61 million for 2024 ($27.22 million per couple). The GST exemption will likewise increase by the same amount.
  • The annual gift tax exclusion will increase from the current $17,000 up to $18,000 in 2024.
  • The gift tax exclusion amount that can be given annually to a non-citizen spouse is increasing from $175,000 up to $185,000 next year.
  • Rev. Proc. 2023-34 also provides that trusts and estates are in the highest tax bracket for ordinary income over $15,200.

Related News Posts

Tax Consequences of Judgements or Settlements from Legal Proceedings

Tax Consequences of Judgements or Settlements from Legal Proceedings

Oct 1, 2024

Generally, amounts received for nonpersonal injuries are included in gross income. Punitive damages are also generally included in gross income, with a limited exception for certain wrongful death actions.

However, Section 104(a) of the Internal Revenue Code (IRC) generally excludes amounts received as compensation for personal physical injury or physical sickness from gross income. This exclusion applies to a variety of payments, including those received under workmen’s compensation acts, certain accident or health insurance, pensions or annuities for injuries or sickness resulting from active military service, compensation for the death or disability of a public safety officer, disability income due to injuries from terrorist or military actions, and damages (other than punitive damages) received for personal physical injuries or physical sickness.

read more