deduction

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Deduction

That which is deducted; the part taken away; abatement; as in deductions from gross income in arriving at net income for tax purposes.

In Civil Law, a portion or thing that an heir has a right to take from the mass of the succession before any partition takes place.

A contribution to a charity can be used as a deduction to reduce income for Income Tax purposes if the taxpayer meets the requirements imposed by law.

deduction

n. an expenditure which an income tax payer may subtract from gross (total) income to determine taxable income. This is not the same as an exemption which is for one's marital status, age over 65, blindness and number of dependents (e.g. children), which, added together, reduce the tax owed.

deduction

(Conclusion), noun assumption, divination, hypothesis, illation, implication, logical process, logical sequence, opinion, postulate, postulation, ratiocination, rationalization, reasoned judgment, supposal, supposition, surmise, theory, thesis

deduction

(Diminution), noun abatement, attenuation, cut, decline, decrease, decrement, deductio, deminutio, discount, dwindling, lessening, lowering, making less, minimization, reduction, removal, shortening, shrinkage, subduction, subtraction, withdrawal
Associated concepts: allowable deduction, business deduccions, deduction directed by law, deduction from purchase price, deduction of cost, deduction of expense, deductions from account, deductions from salary, income tax deduccions, marital deduction, special deduction
See also: computation, concept, conclusion, consequence, construction, corollary, decrease, decrement, determination, dialectic, diminution, discount, estimate, estimation, holding, hypothesis, idea, inference, perception, presumption, ratiocination, rebate, removal
References in periodicals archive ?
6 percent federal bracket, you'll find that shifting income reduces the phaseout of exemptions and itemized deductions, so deductions will increase as income is reduced.
No one wants to repeal the entire homeowner tax deduction.
If you don't take these deductions, it is like throwing twenties out the car.
Thus, if a financial institution has a qualified tax-exempt obligation that meets these four requirements, the interest expense deduction is subject to a 20% (instead of 100%) disallowance.
Prior to 1942, the courts had held that tenant-stockholders could not take deductions for taxes paid by a co-op.
Some of the more significant aspects of the legislation include the liberalized student loan deduction in the Job Creation and Worker Assistance Act of 2002; limited Sec.
As an incentive, under the Internal Revenue Code section 170(h), federal law permits the donation of a conservation easement to be treated as a tax-deductible charitable contribution, with the property owner receiving an income tax deduction equivalent to the fair market value of the conservation easement, as determined by a real estate appraiser.
Itemized deductions have to add up to more than the standard deduction.
In exchange for yet another Federal agency piling regulations onto the long-term care field, the members of the Health Insurance Association of America, the American Health Care Association and other supporters of the legislation hope that the tax deduction will jumpstart privately financed nursing home care.
Specifically, the proposed regulations reject the notion that all charitable contributions should be ratably apportioned and set forth special rules for the allocation of charitable contribution deductions solely to U.
The IRS has established a two-part test for approving home office deductions," says Joseph Odzer, tax manager in the Chicago accounting firm of Ostrow Reisin Berk & Abrams.
So, for example, you lose $300 in deductions for every $10,000 of AGI above the stated threshold.