2023 Estate and Gift Tax Exemptions

By Ginny Graef, CPA, Partner

2023 Estate and Gift Tax Exemptions

IRS Adjusts Estate and Gift Tax Exemptions for Inflation

The Internal Revenue Service (IRS) recently announced the inflation adjusted Estate and Gift Tax Exemptions for 2023.

The lifetime Estate and Gift Exemption for 2023 will be $12,920,000 for individuals and $25,840,000 for a married couple. The new exemption amounts represent a substantial increase from the 2022 amounts of $12,060,000 and $24,120,000, respectively.

The annual gift tax exclusion will be increased from $16,000 per donee to $17,000 per done for 2023. A married couple will be able to gift $34,000 per donee in 2023.

Estate and Gift Tax Exemption Timing

The lifetime exemption amounts are expected to sunset at the end of 2025, unless Congress takes action to increase or extend these exemption amounts. If the larger exemptions do sunset, the exemption for 2026 is projected to fall to around $6,500,000 per individual or $13,000,000 for a married couple.

Taxpayers should work with their tax and financial advisors to plan to take advantage of these exclusion and exemption amounts prior to the end of 2025.

If you have questions about the estate and gift tax exemption adjustment or other estate planning considerations, reach out to your Keiter Opportunity Advisor.


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About the Author

Ginny Graef

Ginny Graef, CPA, Partner

Ginny enjoys working closely with her clients and their team of legal and financial advisors to provide tax planning solutions that meet her clients’ specific needs and goals. Ginny’s areas of expertise include income, gift, and trust and estate compliance and planning services. In addition, she focuses on compliance and consulting related to investment partnerships.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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