Now that we’re well into the New Year, taxpayers should know 2017’s inflation adjustments for several tax provisions set forth in Rev. Proc. 2016-55. These adjustments apply to tax years beginning in 2017 and transactions or events occurring during the 2017 calendar year. Many affect estate planners and expatriates.
*The 2017 taxable income thresholds on trusts and estates under § 1(e) are:
| If Taxable Income is: | The Tax is: |
| Not over $ 2,550 | 15% of the taxable income |
| Over $ 2,550 but not over $ 6,000 | $ 382.50 plus 25% of excess over $ 2,550 |