11-Dec-19
2020 Inflation Adjustments
Take-Away: The IRS recently published the inflation adjustments for some of the tax exemptions or exclusions that we regularly work with on behalf of our clients.
Source: Revenue Procedure 2019-44
2020 Exemption Amounts:
- Basic Exclusion Amount (BEA): was $11.4 million per individual; for 2020 the BEA will be $11.58 million for an individual (this is for each of gift or estate, and GST taxes)
- Annual Exclusion Amount: was $15,000 per donee; for 2020 the annual exclusion amount will remain at $15,000 per donee
- Marital Deduction for Non-US Spouse: was $155,000 for 2020 the marital deduction (excluded amount) for a non-US spouse will be $157,000 per year
- Special Use Valuation Limitation for real estate: was $1.16 million per decedent for 2020 the limitation will be $1.18 million
- IRC 6166 2% Portion (interest only) for closely-held business: was $1.55 million for 2020 the 2% portion will be limited to $1.57 million