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Highlights of 2007 Tax Changes, Publication 553 (3/2008)

4. Estate and Gift Taxes

2007 Changes

Annual Exclusion for Gifts to Non-U.S. Citizen Spouses Increased

Maximum Estate and Gift Tax Rate Reduced

2008 Changes

Annual Exclusion for Gifts to Non-U.S. Citizen Spouses Increased

Section Links for Highlights of Tax Changes, Publication 553

4. Estate and Gift Taxes

2007 Changes

Annual Exclusion for Gifts to Non-U.S. Citizen Spouses Increased

The annual exclusion for gifts made to spouses who are not U.S. citizens has increased to $125,000.

Maximum Estate and Gift Tax Rate Reduced

For estates of decedents dying, and gifts made, after 2006 and before 2010, the maximum rate for the estate tax and the gift tax is 45%.

2008 Changes

Annual Exclusion for Gifts to Non-U.S. Citizen Spouses Increased

For calendar year 2008, the annual exclusion for gifts made to spouses who are not U.S. citizens will increase to $128,000.