What is a marital deduction?

A marital deduction is a tax provision created to help married couples minimize their tax burden. In Maryland, a marital deduction allows one spouse to transfer property to the other spouse without having to pay taxes on it. This means that when a couple divorces, one spouse can transfer property to the other without having to pay capital gains taxes or other taxes on it. This deduction is especially useful when one spouse is significantly wealthier than the other. For example, if one spouse owns a house and the other does not, the wealthier spouse can transfer the house to the other spouse tax-free. This deduction can also help to ensure that the less wealthy spouse is able to receive their fair share of property in the event of a divorce. Generally, marital deductions are only available to married couples and not to individuals who are just living together.

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