Taxation of Estates and Gifts

Applicable Exclusion Amount

Currently, the applicable exclusion amount is $10,000,000 plus the cost-of-living adjustment (so $11,400,000 in 2019). 26 U.S.C. § 2010(c)(3)(B)–(C). This allows an exclusion of that amount for everyone. (This exclusion is accomplished through the applicable credit amount.)

  • Read problems carefully! They may have an older year and thus a lower exclusion amount.

The applicable exclusion amount is increased by the deceased spousal unused exclusion amount.