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