ESTATE AND GIFT TAX INFLATION ADJUSTMENTS (Federal Tax Bulletins)
This table
shows year-by-year the increases in thresholds for selected amounts that are
adjusted for inflation on an annual basis. Beginning in 2004, the Generation Skipping
Exemption is equal to the Applicable Exclusion Amount.
Year
Generation-
skipping exemption
Ordinary annual exclusion from
gift tax
Annual exclusion for gifts to
a non-citizen spouse
Special use valuation
reduction limit
"2-percent
portion" for §6166
Reporting gifts from foreign
persons**
2000
$1,030,000
$10,000
$103,000
$770,000
$1,030,000
$10,931
2001
$1,060,000
$10,000
$106,000
$800,000
$1,060,000
$11,273
2002
$1,100,000
$11,000
$110,000
$820,000
$1,100,000
$11,642
2003
$1,120,000
$11.000
$112,000
$840,000
$1,120,000
$11,827
2004
$1,500,000*
$11,000
$114,000
$850,000
$1,140,000
$12,097
2005
$1,500,000*
$11,000
$117,000
$870,000
$1,170,000
$12,375
2006
$2,000,000*
$12,000
$120,000
$900,000
$1,200,000
$12,760
2007
$2,000,000*
$12,000
$125,000
$940,000
$1,250,000
$13,258
2008
$2,000,000*
$12,000
$128,000
$960,000
$1,280,000
$13,561
2009
$3,500,000*
$13,000
$133,000
$1,000,000
$1,330,000
$14,139
*Equals Applicable Credit Amount
** IRS Notice 97-34 increased the amount that an individual can receive from a
foreign person to $100,000, not adjusted for inflation
