The IRS has released inflation adjustment figures for over 60 tax provisions, including the 2025 tax rate tables. (Rev. Proc. 2024-40) Other key adjustment figures include:
- Standard deduction: Increased to $30,000 for married filing joint (MFJ); $22,500 HOH, and $15,000 for single and married filing separate taxpayers;
- Estate tax basic exclusion amount: Increased to $13,990,000;
- Annual gift tax exclusion: Increased to $19,000;
- IRC §179 current expense limitations: The dollar limit is increased to $1,250,000 ($31,300 for sports utility vehicles) and the investment limit is increased to $3,130,000;
- IRC §199A threshold and phase-in range amounts: The threshold is increased to $197,300 ($394,600 MFJ). The phase-in range amount is also increased to $247,300 ($494,600 MFJ); and
- Excess business loss threshold: The threshold is increased to $313,000 ($626,000 MFJ).
The retirement-related inflation adjustment figures are not included in Rev. Proc. 2024-40. These are announced separately, usually in November.
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