Rev. Proc. 2025-32

Summary

Rev. Proc. 2025-32 sets forth inflation-adjusted amounts for 2026 for numerous Internal Revenue Code provisions, including tax rate tables, standard deduction, child tax credit, earned income credit, and penalty thresholds. It modifies Rev. Proc. 2024-40 to incorporate amendments made by the One, Big, Beautiful Bill Act (OBBBA), such as making permanent the increased standard deduction and child tax credit, increasing the section 179 expensing limit, and adjusting the alternative minimum tax exemption. The procedure also updates various exclusion amounts, credit phaseouts, and reporting penalties for the 2026 tax year.

Holdings

1. The revenue procedure sets forth numerous inflation-adjusted amounts for 2026, including the standard deduction ($16,100 for unmarried individuals), the maximum capital gains rate thresholds, the child tax credit ($2,200), and limitation amounts for various credits and deductions.

Questions Presented

1. What are the inflation-adjusted amounts for various Internal Revenue Code provisions for 2026 as modified by the OBBBA?
2. What are the standard deduction amounts for 2025 as modified by the OBBBA?
3. What are the §179 expensing limits for 2025 as modified by the OBBBA?
4. What are the standard deduction amounts for 2026?
5. What are the §179 expensing limits for 2026?
6. What is the maximum child tax credit for 2026?
7. What is the basic exclusion amount for estate tax for 2026?
8. What is the annual exclusion for gifts for 2026?
9. What is the foreign earned income exclusion for 2026?

Disposition

other