Thursday, October 17, 2013
Recently, experts have released their estimates for the 2014 IRS inflation rates. Experts believe the most impactful change the taxpayers face will be the lifetime gift and estate tax exemption, which will be indexed for inflation. One of the experts has predicted that the number the IRS will use to figure out the inflation rate adjustment will be 1.6% lower than previous years. Despite the fact that the alternative minimum tax has been indexed for inflation, other taxes on Medicare and net investment income are not. This could cause some problems for the tax payer.
See Kelly Humke, Predictions for 2014 IRS Inflation Adjustment, Wealth Strategies, Oct. 10, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.