The Tax Cuts and Jobs Act included a provision allowing increased gift and estate tax exclusion amounts from 2018 to 2025, but there’s been uncertainty about what would happen after that. Now the IRS and Treasury have issued proposed regulations that would protect those who gift generously from owing taxes after 2025, when the exclusion amount is scheduled to drop to pre-2018 levels.
As a result, individuals planning to make large gifts between 2018 and 2025 should be able to do so without worrying they will be subject to retroactive taxes after 2025.