Changes in law for gifts made in 2012

10/04/2012

To all of you, who need to file gift tax return, be aware of the following changes in law for gifts made in 2012

v  The annual exclusion remains at $13,000.

v  The annual exclusion for gifts to noncitizen spouses has increased to $139,000.

v  The top tax rate for gifts and generation-skipping transfers remains at 35%.

v  The basic unified credit amount for 2012 is $1,772,800.

v  New Schedule C is to be completed if the donor is a surviving spouse who received a deceased spouse’s unused exemption (DSUE) amount from one or more predeceased spouses.

The IRS has released draft Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions for gifts made during 2012. The new draft reflects changes to the law made by the Tax  Relief Act of 2010. To find more about the form and its instructions see also on the IRS web site.