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2013 Inflation Adjustments for Individuals in the International Tax Arena

2012-10-23

Last week the I.R.S. published Revenue Procedure 2012-41, setting forth inflation adjusted items for 2013.  In the international arena, some of the important inflation adjustments include:

$155,000 --- 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 $151,000 in 2012.  See Rev. Proc. 2011-52.

$668,000 --- 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 $651,000 in 2012.  See Rev. Proc. 2011-52.

$97,600 --- Code § 911(b)(2)(D)(i) --- Foreign earned income exclusion.  This amount is up from $95,100 in 2012.  See Rev. Proc. 2011-52.

$14,000 --- Code § 2503 --- The amount of the annual gift tax exclusion for gifts to any person.  This amount is up from $13,000  in 2012.  See Rev. Proc. 2011-52. 

$143,000 --- Code § 2523(i) --- The amount of the annual gift tax exclusion for gifts to non-citizen spouses.  This amount is up from $139,000 in 2012.  See Rev. Proc. 2011-52. 

$15,102 --- Code § 6039(F) --- Notice of large gifts received from foreign persons.  This amount is up from $14,723 in 2012.  See Rev. Proc. 2011-52.

Tags: Other - Inflation Adjustments