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• Estate and Gift Tax Exclusion Amount. For gifts made and estates of decedents dying in 2025, the exclusion amount will be $13,990,000 ($13,610,000 for gifts made and estates of decedents dying in 2024). 

• Gift Tax Annual Exclusion. For gifts made in 2025, the gift tax annual exclusion will be $19,000 ($18,000 in 2024). 

• Qualified Transportation Fringe Benefits. For 2025, an employee will be able to exclude up to $325 ($315 in 2024) per month for qualified parking expenses, and up to $325 a month ($315 in 2024) of the combined value of transit passes and transportation in a commuter highway vehicle. 

• Section 179. The amount that may be expensed in 2025 under Section 179 will be $1,250,000 ($1,220,000 for 2024). For 2025, the expensing limit will be reduced when more than $3,130,000 of expensing-eligible property is placed in service ($3,050,000 for 2024). 

• Small business exception. Taxpayers that qualify as "small businesses" under Section 448(c) are eligible for various exceptions and limitations under the tax law. For 2025, a business will be a “small business” if its average annual gross receipts (prior three years) do not exceed $31,000,000 ($30,000,000 for 2024). Small businesses can generally avoid: 

• The business interest limitation under Section 163(j).
• Section 263A UNICAP
• The prohibition on the use of the cash method for C corporations and certain partnerships.
• The requirement to keep inventories under Section 471. 

• FSAs. The maximum salary reduction amount that an employee may elect in the case of a health FSA will be $3,300 in 2025 ($3,200 for 2024). 

• Standard deduction. The basic standard deduction for 2025 will be: 

• Joint return or surviving spouse $30,000 ($29,200 for 2024). 
• Single (not head of household or surviving spouse) $15,000 ($14,600 for 2024). 
• Head of household $22,500 ($21,900 for 2024). 
• Married filing separate returns $15,000 ($14,600 for 2024). 

Please feel free to contact your Sisterson representative with any questions.