Oct 31

Internal Revenue Service Update

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The Internal Revenue Service has released Revenue Procedure 2016-55. This includes the annual inflation adjustments to a variety of taxes as set forth in the Internal Revenue Code. A few items of interest include:

Estate Tax Exemption: $5,490,000.00
Annual Gift Tax Exclusion Amount: $14,000.00 (no change)
Annual exclusion amount for gifts to spouses who are not U.S. Citizens: $149,000.00.
Tax on the first sale of an arrow shaft: $0.50.

Top income tax rate for individuals, trusts and estates: 39.6%

The complete document can be found here:
https://www.irs.gov/pub/irs-drop/rp-16-55.pdf