What is the total amount of taxable income in the transfer of assets between spouses who are U.S. citizens?

In the context of asset transfers between U.S. citizen spouses, the correct understanding is that such transfers are generally not taxable. This is because the Internal Revenue Code allows for an unlimited marital deduction, which enables one spouse to transfer any amount of property to the other spouse without incurring gift tax.

As a result, when one spouse transfers assets—whether they be cash, real estate, or other properties—the IRS does not recognize any taxable income or capital gains occurring from this transfer, provided both spouses are U.S. citizens. Therefore, the total amount of taxable income from such a transfer is indeed zero.

This provision is designed to allow spouses to support each other financially without the burden of additional taxation at the time of the transfer, facilitating the management of shared assets without immediate tax consequences.