Rev. Proc. 2011-52 Makes Inflation Adjustments

On Thursday, the IRS made inflation adjustments to many tax items for 1212 with the release of Rev. Proc. 2011-52. The revenue procedure revises the income tax tables and the figures for forty tax credits. Additionally, the revenue procedure revises the standard deduction for tax years beginning in 2012.

The estate and gift lifetime exclusion for decedents dying in 2012 increases to $5.12 million from $5 million. The elective deferral limit for employees who participate in section 401(k), 403(b), or 457(b) plans and the Thrift Savings Plan increases from $16,500 to $17,000.

The IRS also announced the 2012 contribution limits and other figures relating to pension plans and other retirement-related items on Thursday in IR-2011-103. 

The Social Security Administration announced on Wednesday that the Social Security wage base for 2012 will be $110,100 (increased from $106,800 in 2011).

See Inflation Adjustments Made to Many Tax Items for 2012, Journal of Accountancy, Oct. 20, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.