Reno Investors--see How the 2022 IRS Inflation Adjustments May Impact You

STANDARD DEDUCTION, GIFT TAX LIMITS, AND MARGINAL TAX BRACKETS FOR 2022

The Internal Revenue Service (IRS) announced the tax year 2022 annual inflation adjustments for more than 60 tax provisions. Click here to view the full list. Here's a summary of three provisions that may impact homeowners and homebuyers:

Standard Deduction

• $25,900: for married couples filing jointly for the tax year 2022. This is up from $25,100 in 2021.
• $12,950: for single taxpayers and married individuals filing separately. This is from $12,550 in 2021.
• $19,400: for heads of households. This is up from $18,800 in 2021.

Gift Tax Exclusion

• $16,000: annual gift tax exclusion for 2022. This is up from $15,000 in 2021.
• $12,060,000: This is up from $11,070,000 in 2021.

Marginal Tax Brackets

• 37%: for incomes greater than $539,900 ($647,850 for married couples filing jointly)
• 35%: for incomes over $215,950 ($431,900 for married couples filing jointly)
• 32%: for incomes over $170,050 ($340,100  for married couples filing jointly)
• 24%: for incomes over $89,075 ($178,150  for married couples filing jointly)
• 22%: for incomes over $41,775 ($83,550  for married couples filing jointly)
• 12%: for incomes over $10,275  ($20,550  for married couples filing jointly)
• 10%: for incomes of $10,275 or less ($20,550 for married couples filing jointly)

PLEASE NOTE: THIS LETTER AND OVERVIEW IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS REVENUE PROCEDURE 2021-45.