This week the I.R.S. published Revenue Procedure 2015-53, setting forth inflation adjusted items for 2016. In the international arena, some of the important inflation adjustments include:
$161,000 --- 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 $160,000 in 2015. See Rev. Proc. 2014-61.
$693,000 --- 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 $690,000 in 2015. See Rev. Proc. 2014-61.
$101,300 --- Code § 911(b)(2)(D)(i) --- Foreign earned income exclusion. This amount is up from $100,800 in 2015. See Rev. Proc. 2014-61.
$14,000 --- Code § 2503 --- The amount of the annual gift tax exclusion for gifts to any person. This amount the same as in 2015. See Rev. Proc. 2014-61.
$148,000 --- Code § 2523(i) --- The amount of the annual gift tax exclusion for gifts to non-citizen spouses. This amount is up from $147,000 in 2015. See Rev. Proc. 2014-61.
$15,671 --- Code § 6039(F) --- Notice of large gifts received from foreign persons. This amount is up from $15,601 in 2015. See Rev. Proc. 2014-61.
