Gift taxes are not impacted by repeal of the federal estate tax. Unlike the estate tax, the gift tax doesn't disappear in 2010. The gift tax will remain in place, along with its $1 million exemption amount.

Pursuant to the previously noted sunset provisions throughout EGTRRA, the entire Act — including estate tax repeal — ends in 2011, unless Congress takes additional steps to extend repeal beyond 2010. If Congress fails to extend repeal, the estate tax is reinstated with a $1 million exemption and a top rate of 55 percent, the stepped-up basis returns, and the gift and estate tax become unified once again.

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