Estate Planning

2022 Estate and Gift Tax Exemption Amounts

In 2022, the annual gift tax exclusion will increase from $15,000 to $16,000 per recipient.

In 2022, the estate and gift tax exemption will increase from $11.7 million to $12.06 million per taxpayer.

See IRS provides tax inflation adjustments for tax year 2022. See also IRS Announces Increased Gift and Estate Tax Exemption Amounts

Also of interest, the IRS issued final regulations establishing a new user fee for an estate tax closing letter. An estate closing letter informs the recipient that the IRS has accepted an estate tax return and/or generation skipping tax return.

Prior to June 2015, the letters, although not mandated by any statute, were automatically issued upon closing of every estate tax return filed. Since then, they have been issued only upon request. That change was prompted by the number of estate tax filings having dramatically increased after late 2010, when the “portability” provision in Sec. 2010(c) was enacted.

See P. Bonner, Journal of Accountancy, Final regulations establish a user fee for estate tax closing letters (9/27/2021)

Published by
David McGuffey

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