Marital Deduction

AAA

DEFINITION of 'Marital Deduction'

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

INVESTOPEDIA EXPLAINS 'Marital Deduction'

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

RELATED TERMS
  1. Unlimited Marital Deduction

    A provision in United States Federal Estate and Gift Tax Law ...
  2. Marital Trust

    A fiduciary relationship between a trustor and trustee for the ...
  3. Unified Tax Credit

    A tax credit that is afforded to every man, woman and child in ...
  4. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  5. Kiddie Tax

    A special tax law created in 1986 imposed on individuals under ...
  6. Marital Property

    A U.S. state-level legal distinction of a married individual's ...
Related Articles
  1. Getting Started On Your Estate Plan
    Options & Futures

    Getting Started On Your Estate Plan

  2. Refusing An Inheritance
    Retirement

    Refusing An Inheritance

  3. Federal Tax Brackets
    Taxes

    Federal Tax Brackets

  4. 5 Ways Your Partner Can Ruin Your Credit
    Budgeting

    5 Ways Your Partner Can Ruin Your Credit

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center