IRS Increases Tax Breaks for Gifts, Capital Gains and Estates

IRS announced income thresholds that trigger some taxes are changing in 2023

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IRS is making the changes to account for inflation

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This move by IRS will mostly impact wealthy taxpayers and the middle class also likely will benefit

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The exclusion will be $17,000 per recipient for 2023

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Annual amount that one may give to a spouse who is not a US citizen will increase to $175,000 in 2023

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Estate and gift tax exemption will be $12.92 million per individual for 2023 from $12.06 million in 2022

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Lifetime estate and gift tax exemption will increase to $12.92 million in 2023, that amount is set to be cut in half at the start of 2026

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