The IRS has released Revenue Procedure 2024-40, which specifies annual inflation adjustments for tax year 2025.
Some highlights:
- Gift, estate and generation-skipping transfer tax exemption amounts: $13.99 million (up from $13.61 million)
- Annual gift tax exclusion (IRC Section 2503): $19,000 (up from $18,000)
- Top (37%) income tax bracket for estates and trusts: $15,650 (up from $15,200)
- Zero percent tax bracket for capital gains for estates and trusts: $3,150
Our page at TAX.GD has been updated with these numbers and more.
Remember, BDOT planning can shield your trust from high income tax rates and over time yield greater asset protection.
