Close Close

Regulation and Compliance > Federal Regulation > IRS

IRS Revises Limits

Your article was successfully shared with the contacts you provided.

The Internal Revenue Service has released a list of inflation-adjusted deduction limits and eligibility limits for 2007.

One section of the list, published as Revenue Procedure 2006-53, gives the new limits on deductibility of long term care insurance premiums.

The limit has increased to $290, from $280, for taxpayers 40 or under; to $550, from $530, for taxpayers over 40 up to 50; to $1,110, from $1,060, for taxpayers over 50 up to 60; to $2,950, from $2,830, for taxpayers over 60 up to 70; and to $3,680, from $3,530, for taxpayers ages 70 and older,

The same revenue procedure gives the 2007 limits for medical savings accounts, health savings accounts, Roth individual retirement accounts and the annual gift exclusion.

The document also gives the limits for “interest on a certain portion of the estate tax payable in installments” and for “periodic payments received under qualified long-term care insurance contracts or under certain life insurance contracts.”

A copy of the revenue procedure is on the Web at Document Link