Unlimited Marital Deduction Question

[Cara Lonsdale]

Can anyone break down the Unlimited Marital Deduction for me?

Spouses are both living, and still married.  Spouses file taxes jointly.  Both spouses are US citizens.

If Spouse A gives a CASH gift to Spouse B, is it a taxable event? 
How does it get deducted on Spouse A's taxes (what line)?
Does Spouse B have to report it (I assume so)?  If so, where (what line)?
What are the limitations, if any?

What else is important to know about the Unlimited Marital Deduction?

[Lance Lvovsky]

Originally posted by @Cara Lonsdale:

Can anyone break down the Unlimited Marital Deduction for me?

Spouses are both living, and still married.  Spouses file taxes jointly.  Both spouses are US citizens.

If Spouse A gives a CASH gift to Spouse B, is it a taxable event? 
How does it get deducted on Spouse A's taxes (what line)?
Does Spouse B have to report it (I assume so)?  If so, where (what line)?
What are the limitations, if any?

What else is important to know about the Unlimited Marital Deduction?

 There is no income tax deduction for transferring cash to your spouse.

Unlimited marital deduction is relating to the wealth transfer tax laws = gift and estate tax. Not income tax.

High level - you do not pay gift tax on transferring (gifting) assets to your spouse.