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.

References in periodicals archive ?
Election compensation, Basilio asserted, "should not be subjected to tax deduction as it has never been done prior to 2018 while no new law was passed to enable the BIR order." He added that even the travel allowance - which is clearly not an income but an actual expense on the side of teachers - "was not spared from the exactions of the tax agency."
Expanding on the 179D commercial energy efficiency tax deduction available to commercial businesses within the U.S., personal tax benefits are available when dealing with a nontaxable entity.
Now, back to doing my taxes and seeing if the new LED lamps and dimmers I installed in my home qualify me for a tax deduction!
Gift tax deductions will be increased, reflecting inflation, from 30 million won to 50 million won for adults, and from 15 million won to 20 million won for minors.
Roughly 7 in 10 oppose eliminating the charity deduction, compared with about 6 in 10 who oppose getting rid of the mortgage interest and state and local tax deductions.
In the section on "Optimal Tax Deductions for Net Losses," we examine the optimal tax deduction under private insurance with a policy limit.
Prior to January 1, 2006 people who purchased hybrids were allowed to take a $2000 income tax deduction, after that date, the deduction became even larger.
European Court of Justice Advocate-General Christine Stix-Hackl suggested on 1 June that Danish legislation introducing tax deductions for payments into life insurance and pension insurance schemes ((more precisely, Articles 18 and 19 of the Pensionsbeskatningslov - law on pension tax) is contrary to the provisions of the EC Treaty governing the freedom to provide services, the free movement of workers, freedom of establishment and the free movement of capital.
This catalog of tax deductions focuses on items and expenses that are tax deductible by small, primarily sole proprietorship businesses that are required to file US federal income taxes.
Under the AMT, taxpayers with large amounts of regular tax deductions and credits (known as "preferences") have to add back these preferences, subtract flat exemption amounts, adjust for long-term capital gains taxes and recompute the tax (under a two-tiered rate) on the totals.
Possible downside: Costs money upfront in the form of tax deductions.
A new book, Home Business Tax Deductions." Keep What You Earn, by attorney Stephen Flshman (Nolo, www.nolo.com, $34.99), is a tax primer designed to help people who work from home keep their taxes to a legal minimum by taking advantage of the tax deductions for home-based businesses.