The unified estate and gift tax exclusion amount will increase from $11,180,000 to $11,400,000. The GST exemption will rise accordingly. The annual gift tax exclusion will remain $15,000. The special use valuation reduction limit will rise from $1,140,000 to $1,160,000. The annual exclusion for gifts to non-citizen spouses will increase from $152,000 to $155,000. The income threshold for the highest tax rate of 37% on the income of trusts and estates will be $12,750.
Tax Reform 2.0
House Ways and Means released three bills that compromise “Tax Reform 2.0.” One of them, the American Innovation Act of 2018, would make the increased estate and gift tax exemptions permanent. Commentators suggest such bills have a 0% chance of being passed into law.