Rev. Proc. 2022-38, 2022-45 IRB 1, makes various 2023 inflation adjustments. One adjustment is for the basic exclusion amount which will increase to $12.92 million from $12.06 million. This amount will also apply for the generation-skipping transfer tax. See IRC Sec. 2631. Another adjustment is for annual exclusion gifts which will increase from $16,000 to $17,000. The annual exclusion for gifts to non-citizen spouses will be $175,000. For income tax purposes, (i) the exemptions and (ii) the standard deductions have been increased and the rate brackets have been changed.
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