Estate & Gift Tax Update - What Will the Annual Exclusion Be for 2010?

While the federal estate tax is currently scheduled to disappear on January 1, 2010, the federal gift tax is here to stay with the lifetime gifting exclusion amount remaining at $1,000,000 for 2010.

Aside from this, the IRS recently issued Rev. Proc. 2009-50, which states that in 2010 the annual gifting exclusion amount will remain at $13,000 per gift to a non-spouse and the annual gifting exclusion amount for gifts made to a spouse who is not a U.S. citizen will remain at $133,000.

The only gift tax change that will take effect in 2010 will be the reduction of the highest gift tax rate from 45% down to 35% - now don't get too excited.

• What is the Gift Tax?
• What Gifts Are Subject to the Gift Tax?
• Are Gifts to Your Spouse Taxable?
• What is an Annual Exclusion Gift?
• Annual Exclusion Chart: 1997 - 2010
• What is the Exemption from Gift Taxes?
• What is the Future of the Federal Estate Tax?
• One Year Patch Likely to End Estate Tax Repeal