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What we know so far about murky 2013 tax environment

Real Estate Tax Talk

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Congress and President Obama continue to negotiate in an effort to avoid the "fiscal cliff" if the Bush tax cuts are allowed to expire at the end of the year. As a result, many features of the 2013 tax environment remain murky. No one knows, for example, what the personal income tax rates will be in 2013. However, we do know a few things for sure: The IRS has announced many of the inflation adjustments for 2013, and employers in many states will face increased federal unemployment taxes. 2013 inflation adjustments Every year the IRS adjusts for inflation tax brackets, tables, exemptions, thresholds and other items. The IRS has announced some, but not all, of the adjustments for 2013. The annual exclusion for gifts in 2013 is $14,000, up from $13,000 in 2012. The amount unearned income of minor children that is not subject to the "Kiddie tax" is $1,000 for 2013, up from $950 in 2012. 401(k)/403(b)/457 contribution limit: $17,500 (up $500 from 2012). The in...