2018 IRS Estate Tax Exemption and 2018 IRS Gift Tax Exclusion
2018 IRS Estate Tax Exemption and 2018 IRS Gift Tax Exclusion UPDATE
The federal government has released the 2018 IRS Estate Tax Exemption and 2018 IRS Gift Tax Exclusion. The numbers are up this year from the 2017 exemption and exclusion.
The estate tax exemption this year is $5.6 million, which is up from $5.49 last year. As discussed in Forbes, this potentially gives married couples a $11.2 million exemption for 2018. The 2018 Tax Reform Act has increased these numbers. The estate tax exemption for 2018 has increased to $11.2 million per person, or $22.4 for a married couple.
The annual gift exclusion has increased for the first time since 2013, and is now $15,000. Remember this is per person, so an individual can give up to $15,000 each to as many people as he or she wants. Also, married couples gifts don’t count against the other spouse. So, a married couple could potentially give a child up to $30,000 annually Tax Free.
In Oklahoma there is no longer an estate tax. With the new federal exemptions and exclusion fewer Oklahoma probates will be subject to estate taxes. However, the increase in the annual gift tax exclusion will allow Oklahomans to give their loved ones more tax free. Have questions? Call the Cortes Law Firm today at 405-213-0856