January 12, 2012
Taxation Alerts

2012 Unified Credit/Last Year for Large Gifts?
by Bridget McInerney Harris

The unified credit for the calendar year 2012 is increased to $1,772,800 which exempts $5,120,000 from tax. The unified credit applies to both gift tax and estate tax. Currently, estates and gifts in excess of the exemption amount are subject to a top tax rate of 35%. Unless legislation is passed, effective January 1, 2013 the tax exemption is scheduled to drop from $5,120,000 to $1,000,000 and the top estate and gift tax rate increased from 35% to 55%.

IRS Circular 230 Disclosure

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
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