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 ?
In addition, cellular companies were deducting 10pc for the services rendered by them.
Upon retirement, if their income declines, deducting fees from their joint account may be the best option.
170(b)(2), a regular C corporation's deduction for charitable contributions cannot exceed 10 percent of its taxable income (without deducting charitable contributions, special deductions for dividends received, premiums on convertible bond repurchases, and net operating or capital loss carrybacks).
There are many similarities between deducting legal fees under Secs.
Most buyers probably have already been deducting pending liability claims if the item normally would have been deductible.
The department had been deducting 60 percent to pay for three filling fees on which the inmate owed money; the appeals court held that the twenty-percent-of-income payments provided for under the Prison Litigation Reform Act (PLRA) must be calculated "per case" rather than "per prisoner." (Texas Department of Criminal Justice, Eastham Unit)
The good news is that this law for deducting business miles has been extended to leased cars.
In fact, following the enactment of the Small Business Job Protection Act, the Tax Court has issued a new opinion in Fort Howard, ruling that the statutory amendment does not preclude the taxpayer in Fort Howard from deducting and amortizing its financing costs and fees over the term of the loan.(81) New section 162(k)(2)(A)(ii) provides that the disallowance rules of section 162(k)(1) shall not apply to any "deduction for amounts which are properly allocable to indebtedness and amortized over the term of such indebtedness."(82) Thus, corporations are now permitted to amortize costs attributable to obtaining debt financing for reacquiring its own (or a related party's) stock and deduct them over the term of the loan.
Both liabilities and equity are defined in FASB Concepts Statement 6, "Elements of Financial Statements." Liabilities are "probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events." Equity is the residual interest in the assets of an entity that remains after deducting its liabilities.
As an alternative to currently deducting eligible timber-related expenditures, materially participating woodland owners may capitalize them if they so choose in years during which no income is produced from the property.