2014 Estate, Gift and GST Exemptions and Rates

11/18/2013

The IRS has released Rev Proc. 2013-35, which details the inflation-adjusted federal income tax brackets and estate tax, gift tax and generation-skipping transfer tax exemptions for 2014.

The exemptions will be as follows for the 2014 tax year:

  • Estate Tax Exemption - $5,340,000
  • Lifetime Gift Tax Exemption - $5,340,000
  • Generation-Skipping Transfer Tax Exemption -$5,340,000

This results in a $90,000 increase above the 2013 exemptions of $5,250,000, which means that if you have already used up your lifetime gift tax exemption in prior years, then single people can gift another $90,000 in 2014, and married couples can gift another $180,000. On the other hand, the tax rate for each of these taxes will remain at 40% in 2014 and future years.