|
2008-2009 estate and gift tax amounts
If you give someone money or
property during your life, you may be subject
to federal gift tax. The money and property
you own when you die, your estate, also may
be subject to federal estate tax. However, federal
tax laws allow you to give money away during your
lifetime or leave to your heirs certain amounts
that are exempt from taxation.
The
Economic Growth and Tax Relief Reconciliation Act of 2001 provides for increasing
exemptions from the estate tax, with its elimination in 2010. However, under the
law's sunset clause, the tax will return in 2011 unless extended.
 |
| Estate tax phaseout |
|
|
|
|
| 2005 |
$1.5
million |
47 percent |
| 2006, 2007 and 2008 |
$2
million |
46 percent in
2006
45 percent in 2007 and 2008 |
| 2009 |
$3.5
million |
45 percent |
| 2010 |
Tax
repealed |
Tax repealed,
but gift tax still applies in some cases at 35 percent rate |
| 2011 |
$1
million |
55 percent |
Annual gift tax exclusion
You can give the following monetary amounts to each person, and to as many individuals
as you want, without triggering the gift tax. The amount is indexed each year
for inflation.
|
| Annual gift tax exclusion |
|
|
|
|
2008 |
$12,000 |
2009 |
$13,000 |
|
|
