Revenue Procedure 2010-40Revenue Procedure 2010-40
In Rev. Proc. 2010-40, Internal Revenue Bulletin 2010-46 (Nov. 15, 2010), the IRS set forth certain inflation-adjusted tax items for 2011. The inflation adjustments include the following, which take effect on Jan. 1, 2011: The annual exclusion remains at $13,000 under IRC Section 2503. The first $136,000 (up from $134,000) of qualifying gifts to a non-citizen spouse aren't included in the year's total
January 1, 2011
In Rev. Proc. 2010-40, Internal Revenue Bulletin 2010-46 (Nov. 15, 2010), the IRS set forth certain inflation-adjusted tax items for 2011. The inflation adjustments include the following, which take effect on Jan. 1, 2011:
The annual exclusion remains at $13,000 under IRC Section 2503.
The first $136,000 (up from $134,000) of qualifying gifts to a non-citizen spouse aren't included in the year's total amount of taxable gifts under IRC Sections 2503 and 2523.
The amount used to calculate the “2-percent portion” for purposes of IRC Section 6166 is now $1.36 million (up from $1.34 million).
For decedents dying in 2011, if the executor elects to use the special use valuation method under IRC Section 2032A for qualified real property, the resulting aggregate decrease in the property's value of the qualified real property resulting from such election may not exceed $1.02 million (up from $1 million).
The Rev. Proc. didn't provide the GST tax exemption for 2011, but since the IRC Section 6166 “2 percent portion” and the GST tax exemption were both $1 million in 2001, adjusted for inflation, the GST tax exemption should be $1.36 million in 2011.
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