Bloomberg’s 2017 Tax Projections
The day that we look forward to all year has finally arrived. No, it isn’t Christmas morning. Today Bloomberg announced projections for important numbers for the 2017 tax year. Some notable figures include:
- Basic Federal Lifetime Exclusion Amount – $5,490,000.00
- Annual Gift Tax Exclusion – $14,000.00
- Gifts to a Non-Citizen Spouse – $149,000.00
- Maximum Tax Bracket for Trust and Estate Income – 39% Beginning at $12,500 of Income.
Although inflation has been low, I was a little surprised to see the Annual Gift Tax Exclusion projected to remain the same for another year. Also, if these numbers hold, we will see another small increase in the Basic Federal Lifetime Exclusion Amount.
As always, the income tax brackets for trusts and estates are compressed and call for careful planning. When other circumstances allow, distributions from estates and irrevocable trusts will often be more beneficial tax efficient than accumulating the income inside the trust.
If you would like to see the 2017 Projections in their entirety, you can follow this link: bloomberg-2017-projections.