Taxpayer Relief Act- A quick Summary of Gift Taxes

Here are the main provisions of the American Taxpayer Relief Act of 2012, passed to avoid (mostly) the “Fiscal Cliff:”


The $5 million gift, estate and GST Tax exemption amount has been made permanent, with inflation adjustments.  This makes the amount for 2013 estimated to be about $5.25 million.  The total Exemption for married couples will be twice that amount.

A flat 40% transfer tax for all future years for amounts that exceed the $5.25 gift tax exempion amount.  The “portability” provision is now permaent- the surviving spouse can use the remainder of their spouse exemption amount.

The Annual Gift Tax exclusion increases to $14,000 per donee, double for married couples.

The IRA Charitable Contribution rule has been extended to 2/1/13 for 2012.