At Extreme Investor Network, we strive to provide you with the most up-to-date and relevant information to help you make informed decisions about your personal finances. That’s why we are excited to share with you the latest update from the Internal Revenue Service regarding the estate and gift tax exemption for 2025.
According to the IRS, the “basic exclusion amount” is set to increase to $13.99 million per person in 2025, up from $13.61 million in 2024. This means that individuals can make tax-free transfers during their lifetime and at death up to this new threshold.
In addition to the estate and gift tax exemption, the IRS has also announced adjustments to other key provisions, such as federal income tax brackets, long-term capital gains tax brackets, and eligibility for the earned income tax credit.
It’s important to note that after 2025, the higher estate and gift tax exemption implemented by former President Donald Trump will expire unless Congress takes action to extend it. If the provision ends, the exclusion will revert back to 2017 levels, adjusted for inflation. The Tax Cuts and Jobs Act initially doubled the exemption to $11.18 million in 2018, as reported by the Tax Policy Center.
Stay tuned to Extreme Investor Network for more updates and insights on how these changes may impact your financial plan. Be sure to consult with a financial advisor to discuss how you can maximize the benefits of these tax provisions and ensure your estate planning strategies are aligned with your long-term goals.