By: Martin M. Shenkman, CPA, MBA, JD
The exemption amount is indexed beginning in 2012. This could also prove an incremental cost that will likely enhance the burden of the congressional estate tax generosity on the federal fiscal budget in future years. Section 302 of the 2010 TRA: (B) Inflation adjustment.—In the case of any decedent dying in a calendar year after 2011, the dollar amount in subparagraph (A) shall be increased by an amount equal to—(i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2010 for calendar year 1992 in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.
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