The Tax Cuts and Jobs Act temporarily doubled the amount which can be given free of tax. However, that amount reverts to the permanent, undoubled amount in 2026. The estate tax ordinarily includes prior taxable gifts and then applies the exclusion to the total. However, in 2026 or later, this could result in a tax on amounts which weren’t taxable when gifted. This issue is the “clawback.” New Proposed Regulations resolve this issue. Read on to learn more.
About Allen Leavitt
Allen Leavitt was raised in Las Vegas, Nevada. Allen attended University of Nevada-Las Vegas, where he received a bachelor’s degree in Business Administration and Economics in 2006. Then, wanting to couple his business degree with a law degree, Allen attended William S. Boyd School of Law at UNLV. Allen is licensed to practice in all Nevada Courts.