2020-11-06
Last week the IRS published Revenue Procedure 2020-45, setting forth inflation adjusted items for 2021. In the international arena, some of the important inflation adjustments include:
$172,000 --- 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 $171,000 in 2020.
$744,000 --- Code § 877A(a)(1) --- The amount that can be excluded from the mark-to-market gain upon expatriation of a covered expatriate. This amount is up from $737,000 in 2020.
$108,700 --- Code § 911(b)(2)(D)(i) --- Foreign earned income exclusion. This amount is up from $107,600 in 2020.
$15,000 --- Code § 2503 --- The amount of the annual gift tax exclusion for gifts to any person. This amount is the same as in 2020.
$159,000 --- Code § 2523(i) --- The amount of the annual gift tax exclusion for gifts to non-citizen spouses. This amount is up from $157,000 in 2020.
$16,815 --- Code § 6039F --- Notice of large gifts received from foreign persons. This amount is up from $16,649 in 2020.