INCREASE IN 2021 APPLICABLE EXCLUSION AMOUNT

The basic applicable exclusion amount (and generation-skipping tax exemption) will be $11.7 million, up from $11.580 million for decedents dying in calendar year 2021. The annual gift tax exclusion amount remains $15,000. The annual gift tax exclusion for a noncitizen spouse will be $159,000, up from $157,000.

Other inflation adjustments in numerous tax rates are detailed in the attached copy of Revenue Procedure 2020-45.

Revenue Procedure 2020-45