While we are on the subject of 2011 inflation adjustments, due to a lack of significant inflation in 2010 the annual exclusion amount for gifts for federal gift taxes will remain at $13,000. This is the amount that a donor can gift to any given recipient in a calendar year that is not treated as a taxable gift.
The current official rate of inflation is in the neighborhood of 2-3%. If that doesn’t square with your perception of inflation and rising prices, don’t judge yourself too harshly. Go ahead and visit the charts at www.shadowstats.com/alternate_data/inflation-charts. This website compiles its own inflation statistics, inlarge part by ignoring changes made by the government in the CPI rules that now act to depress the “official” rate of inflation. According to Shadowstats, inflation is currently at around 8%.