Concerned by the slew of federal tax changes that helped to ring in the new year this 2015? How will these changes affect you and your West Palm Beach Estate Administration, or Florida Trust Agreement?
Here is a list of some of the major 2015 tax changes that were made to federal gift tax, federal estate tax and federal income tax provisions effective 1/1/2015:
- Estate Tax Exclusion Amount: The lifetime exclusion amount for the estate of any decedent dying during calendar year 2015 will be $5,430,000 (the lifetime exclusion amount of $5 million adjusted for inflation), an increase of $90,000 from 2014.
- Annual Exclusion for Gifts: For 2015 the amount that may be gifted without gift tax consequences (i.e., may be excluded from total taxable gifts reported for the year) will remain at $14,000 in aggregate gifts to each individual donee by the taxpayer/donor.
- Gifts to Non-Citizen Spouses: The first $147,000 of gifts to a non-citizen spouse need not be included in the total taxable gifts reported for 2015, a $2,000 increase over 2014.
- Notice of Large Gifts Received from Foreign Persons: For 2015 recipients of gifts from certain foreign persons will need to report the gifts if their aggregate value exceeds $15,601; this is a slight increase in the reporting threshold.
- Deduction for Long Term Care Insurance Premiums: The Health Reform Act expressly includes eligible long-term care insurance premiums in the definition of deductible medical care. The amount that may be deducted in 2015 ranges from $380 for taxpayers age 40 or under, up to $4,750 for taxpayers over age 70, all subject to the general requirement that overall medical expenses exceed 7.5% of adjusted gross income.
For additional information, Forbes has a useful guide to 2015 tax changes here.
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