marital deduction

When individuals are legally married, they may exchange property free of taxes. Marital deduction is the complete deduction of taxes for marital transactions. There is no limit to value, amount, or frequency of transfers. These transfers are often used in wills. There are many specifics to be accounted for when writing a legal will. The time of the transfer of property to use marital deduction may even be stipulated. Such would be useful because often times a spouse may only outlive the other by less than a year. In which case, the first spouse may have left the property available only after one year. In addition, a different recipient must be assigned for after the one year has passed.

Fast Facts

The spouse that receives the transaction must be a legal U.S. citizen.
Divorced spouses can also transfer property between each other tax-free.

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Income Tax Deduction

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Self Employment Business Tax Deductions

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401k Rollover Rules

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