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Saturday, October 30, 2010

2011 INFLATION ADJUSTMENTS FOR INTERNATIONAL PROVISIONS

The IRS has announced the following 2011 inflation adjustment amounts that relate to international issues:

1. EXPATRIATION. An individual with “average annual net income tax” of more than $147,000 for the five taxable years ending before the date of the loss of United States citizenship under  §877(a)(2)(A) is a covered expatriate for purposes of   §877A(g)(1). Also, for taxable years beginning in 2011, the amount that would be includible in the gross income of a covered expatriate by reason of §877A(a)(1) is reduced (but not below zero) by $636,000.

2. FOREIGN EARNED INCOME EXCLUSION. The foreign earned income exclusion amount under §911(b)(2)(D)(i) is $92,900.

3. ANNUAL EXCLUSION GIFTS TO NONCITIZEN SPOUSES. The first $136,000 of gifts to a spouse who is not a citizen of the United States (other than gifts of future interests in property) are not included in the total amount of taxable gifts under §§2503 and  2523(i)(2) made during that year.

4. NOTICE OF LARGE GIFTS RECEIVED FROM FOREIGN PERSONS. Recipients of gifts from certain foreign persons may be required to report these gifts under §6039F if the aggregate value of gifts received in a taxable year exceeds $14,375.

5. TAX ON ARROW SHAFTS. The tax imposed under §4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer of any shaft of a type used in the manufacture of certain arrows is $0.45 per shaft. 

Okay, the last one has nothing to do with international taxes – it is in here just to see if you are paying attention. Did you know there was a special tax on “arrow shafts?” No, I didn’t think so. but then again, neither did I until about five minutes ago.

Rev.Proc. 2010-40

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