This week we will take a look at one of the changes that was made by the Tax Cuts and Jobs Act (TCJA).
Before the TCJA, the first $5.6 million of transferred property was exempt from estate and gift tax for 2018. The new law temporarily doubles the amount that can be excluded from these transfer taxes.
For estates of decedents dying and gifts made from 2018 through 2025, the TCJA doubles the base estate and gift tax exemption amount from $5.6 million to $11.2 million for 2018, and $22.4 million per married couple, with some basic portability techniques.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein