Inflation Adjustments for 2009

James Roberts (Attorney, Glast, Phillips & Murray, P.C., Dallas, Texas) has written an article entitled Annual Exclusion for Gifts, and Internal Revenue Code §2032A and §2523 Adjustments Made .

Here is a summary of the article:

On Wednesday, October 16, 2008, the Internal Revenue Service issued Rev.Proc. 2008-66, 2008-45 IRB 1, in which the Service published inflation adjusted tax items for 2009. This type of revenue procedure is published annually, and covers the new tax tables and rates for the coming year, adjustments to credits, and a number of other items that are changeable because of inflation. Of importance to estate planners are three things: (a) the change in the annual gift tax exclusion; (b) the maximum reduction amount under Internal Revenue Code Section 2032A; and (c) the non-citizen spouse gift limit.