Estate Planning

Estate and Gift Tax Limits for 2022

Estate and Gift Tax Limits for 2022

Estate Planning, Financial Planning, Tax Planning

2022 Estate and Gift Tax Exemption

The IRS has announced that in 2022, the estate and gift tax exemption will be increased to $12,060,000 per individual, up from $11.7 million in 2021. This means that an individual can leave $12.06 million to heirs and pay no federal estate or gift tax and a married couple will be able to leave up to $24,120,000. While the federal exemption amount is considerably high, there are some states that have lower state estate and gift tax exemption amounts.

The Future of the Estate and Gift Tax Exemption

The federal estate and gift tax exemption was doubled with the 2017 Tax Cuts and Jobs Act. When the Tax Cuts and Jobs Act was passed, the new rules were set to expire at the end of 2025. However, the federal estate and gift tax exemption amount is continuously debated in congress so we may see a change in these limits before the 2025 sunset.

2022 Annual Gift Exclusion

The annual gift exclusion will remain at $16,000 per year in 2022. This means that an individual can gift up to $16,000 to as many other individuals as he or she would like. A married couple can each make $16,000 gifts. For example, if a married couple have three children, they can gift up to $32,000 to each child annually without being required to file Form 709, the U.S. Gift Tax Return.

Editors Note: This blog post was originally published in 2019, but has been updated to reflect 2022 exemptions.

 

Important Disclosure Information: The information contained within this blog is for informational purposes only and is not intended to provide specific advice or recommendations. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Schultz Financial Group Incorporated), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Schultz Financial Group Incorporated. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Schultz Financial Group Incorporated is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Schultz Financial Group Incorporated’s current written disclosure statement discussing our advisory services and fees is available for review upon request. Please Note: Schultz Financial Group Incorporated does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Schultz Financial Group Incorporated’s web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Where you want to go in life is up to you. How to help you get there is up to us.

Contact us today to start your journey…

Contact

Schultz Financial Group Inc.
10765 Double R Blvd. Suite 200
Reno, NV 89521
Phone: (775) 850-5620
Fax: (775) 850-5639
Email: [email protected]

Where you want to go in life is up to you. How to help you get there is up to us.

Contact us today to start your journey…

Contact

Schultz Financial Group Inc.
10765 Double R Blvd. Suite 200
Reno, NV 89521
Phone: (775) 850-5620
Fax: (775) 850-5639
Email: [email protected]

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Copyright © 2018 Schultz Financial Group Inc.

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