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2017 Inflation Adjustments for Individuals in the International Tax Arena

2016-10-27

This week the I.R.S. published Revenue Procedure 2016-55, setting forth inflation adjusted items for 2017.  In the international arena, some of the important inflation adjustments include:
 
$162,000 --- 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 $161,000 in 2016.  See Rev. Proc. 2015-53.
 
$699,000 --- 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 $693,000 in 2016.  See Rev. Proc. 2015-53.
 
$102,100 --- Code § 911(b)(2)(D)(i) --- Foreign earned income exclusion.  This amount is up from $101,300 in 2016.  See Rev. Proc. 2015-53.
 
$14,000 --- Code § 2503 --- The amount of the annual gift tax exclusion for gifts to any person.  This amount the same as in 2016.  See Rev. Proc. 2015-53.
 
$149,000 --- Code § 2523(i) --- The amount of the annual gift tax exclusion for gifts to non-citizen spouses.  This amount is up from $148,000 in 2016.  See Rev. Proc. 2015-53.
 
$15,797 --- Code § 6039(F) --- Notice of large gifts received from foreign persons.  This amount is up from $15,671 in 2016.  See Rev. Proc. 2015-53.
Tags: Authority - Revenue Procedures, Other - Inflation Adjustments