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2014 Inflation Adjustments for Individuals in the International Tax Arena

2013-11-04

Last week the IRS published Revenue Procedure 2013-35, setting forth inflation adjusted items for 2013.  In the international arena, some of the important inflation adjustments include:

$157,000 --- Code § 877(a)(2)(A) --- The average annual net income tax that must be imposed for the five taxable years ending before the date of the loss of United States citizenship (or cessation of long-term permanent residency) for an individual to be considered a “covered expatriate” under Code § 877A(g)(1).  This amount is up from $155,000 in 2013.  See Rev. Proc. 2012-41.

$680,000 --- Code § 877A(a)(3) --- The amount that can be excluded from the mark-to-market gain upon expatriation of a covered expatriate.  This amount is up from $668,000 in 2013    .  See Rev. Proc. 2012-41.

$99,200 --- Code § 911(b)(2)(D)(i) --- Foreign earned income exclusion.  This amount is up from $97,600 in 2013.  See Rev. Proc. 2012-41.

$14,000 --- Code § 2503 --- The amount of the annual gift tax exclusion for gifts to any person.  This amount the same as in 2013.  See Rev. Proc. 2012-41. 

$145,000 --- Code § 2523(i) --- The amount of the annual gift tax exclusion for gifts to non-citizen spouses.  This amount is up from $143,000 in 2013.  See Rev. Proc. 2012-41. 

$15,358 --- Code § 6039(F) --- Notice of large gifts received from foreign persons.  This amount is up from $15,102 in 2013.  See Rev. Proc. 2012-41.

Tags: Other - Inflation Adjustments