Bloomberg Tax, using the September 2021 to August 2022 Chained Consumer Price Index for all Urban Consumers (C-CPI-U) data from the Bureau of Labor Statistics, has estimated the projected amounts of many items of the Code.
It is estimated that the Qualified Disability Trust Deduction in Lieu of Personal Exemption will be $4750. For any decedents dying in the year 2023, the Unified Credit Against Estate tax is estimated to be $12,920,000 and the generation Skipping Transfer Tax exemption amount is also estimated to be $12,920,000. Additionally, for decedents dying in the year 2023, if the executor uses the special use valuation method under §2032A for qualified real property, the aggregate decrease in the value of such property must not exceed $1,310,000. Also, for decedents dying in 2023, the amount used to determine the “2-percent portion” of the interest paid on an estate tax paid in installments is estimated to be $1,750,000.
The annual gift tax exclusion amount is estimated to be $17,000 and the gift tax exclusion amount to spouses who are not United States citizens is estimated to be $175,000. Additionally, beginning in 2023, recipients of gifts from certain foreign persons may be required to report them if their value exceeds $18,567.
Posted by Benjamin Sapozhnikov, Associate Editor, Wealth Strategies Journal.