Thomson-Reuters Checkpoint has been tracking inflation figures. Now that the Consumer Price Index has been published for August 2022, they have estimated what inflation will do to the exemptions and exclusions for estate, gift and GST tax. The IRS has not officially issued these figures, but generally speaking, these estimates are fairly accurate.
The estate and gift exemption amount, currently $12,060,000, will increase to $12,920,000 for 2023. The GST exemption will likewise increase by the same amount.
The annual gift tax exclusion will increase from the current $16,000 up to $17,000 in 2023.
For those who might be interested in special use valuation rules, the current limit on decreases in value that can result from the use of the special valuation rules is $1,230,000 and that is supposed to increase to $1,310,000.
In cases where the estate tax can be deferred and paid out over time (farms and closely held businesses), a portion of the deferral is entitled to a reduced interest rate of 2%. The portion eligible for that rate currently is $1,640,000 and that should increase to $1,750,000.
The gift tax exclusion amount that can be given annually to a non-citizen spouse is increasing from $164,000 up to $175,000 next year.