The Tennessee state legislature has repealed the Tennessee gift tax, effective as of January 1, 2012. The repeal of the gift tax will help those individuals that make large gifts take advantage of the $5.12 million federal exemption.
The Tennessee state legislature has also repealed the Tennessee inheritance tax, effective as of January 1, 2016. The yearly taxable estate exemptions until that date are as follows:
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2012 – $1,000,000
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2013 – $1,250,000
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2014 – $2,000,000
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2015 – $5,000,000