marital deduction

Marital Deduction

A tax reduction that is mainly used for the purposes of estate and gifts. It allows an individual to transfer some assets to his or her spouse tax free, creating a deduction in taxable income.

Notes:

The IRS has strict guidelines for allowable deductions, so it is important to make sure you or your accountant adheres to them when making deductions.

See also: Adoption Credit, Child Tax Credit, Deduction, Estate Tax, Gift, Gift Tax, Head of Household, Household Expenses, Inheritance, Kiddie Tax, Write-Off

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Marital deduction

A tax deduction that allow spouses to transfer unlimited amounts of property to one another.

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marital deduction

The deduction for tax purposes of property transferred between spouses. For estate and gift purposes, all transfers between spouses are free of federal taxation.