The amount of gifts that may be made in 2016 by one person to another without causing the donor to include some portion in his taxable gifts (the “annual exclusion amount”) will remain at $14,000.
Under the provisions of ATRA, the federal lifetime gift tax exemption has been indexed for inflation and therefore increased from $5.43 million in 2015 to $5,450,000 million in 2016. Finally, the generation skipping transfer tax exemption has also been indexed for inflation and therefore increased from $5.43 million in 2015 to $5,450,000 million in 2016.