All property left to a surviving spouse passes free of estate tax; this is called the marital deduction. (I.R.C. � 2056(a).) The marital deduction is not allowed for property left to noncitizen spouses, but the personal estate tax exemption can be used for property left to noncitizen spouses.

How does estate tax work for married couples?

When a person gives or leaves property to his or her spouse, the transfer qualifies for the unlimited marital deduction. It avoids gift and estate tax liability. Since the marital deduction is unlimited, a person can leave the entire estate to the surviving spouse and avoid estate tax issues.

Can you find out who paid property tax on an abandoned house?

In most cases, this is still the owner of the property or a representative, but sometimes, it is an individual hoping to assume ownership after paying the taxes for a number of years. When you learn the identity of the taxpayer, you can determine how to proceed.

What happens to the property of an abandoned spouse?

While the abandoning spouse has not given up any property rights, the abandoned spouse can use any or all of the property within the marital home, including selling it. The abandoning spouse still has a claim on the marital home itself.

Is the abandonment of a home a deductible loss?

Abandonment of personal property, such as a home, is not a deductible loss for federal income tax purposes. An abandonment may lead to the property subsequently being foreclosed on or repossessed. In this case, the gain or loss would be determined according to the rules for foreclosures and repossessions.

What happens to your income when you abandon a property?

If there is a debt that secures the property, such as a mortgage loan, and as a result of abandoning the property, that debt is cancelled, the amount of the cancelled debt constitutes ordinary income to the person who was personally liable for payment of the debt.