deduction


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Related to deduction: tax deduction

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 ?
Included in it was new IRC section 62(a)(20) which provides an above-the-line deduction for legal fees and court costs incurred in connection with discrimination awards.
Old Law: No special deduction limitations applied for contributions of clothing and household items.
Under the notional interest deduction, a new and innovative measure in international tax law, all companies subject to Belgian corporate tax will be able to deduct from their taxable income an amount equal to the interest they would have paid on their capital in the case of long-term debt financing.
If a building does not meet the 50% energy savings target, nonetheless a partial deduction of up to $0.
The insurance group also recommends that property owners consult with a tax-preparation expert before taking the deduction.
The legislative history of section 199 directs the Department of the Treasury to prescribe rules for the proper allocation of items of income, deduction, expense, and loss.
The Section 179 deduction allows a small business to deduct up front the cost of new equipment bought, delivered, and put into service (but not necessarily paid for) before Dec.
Given that over 280 organizations responded to this year's survey, we know that companies continue to struggle with customer deductions and are looking not only for information against which to benchmark deduction data, but ways to improve their deduction management process as well.
Their legislation includes both a tax deduction for long-term care insurance premiums and a tax credit of $1,000 in 2004 for people who require at least six months of long-term care during the year.
Those changes would make employers, not employees, have to determine the amount of the deduction, and to set caps on the amount claimed.
Kamoroff has now turned his small-business charm to work on the 2nd edition of 422 Tax Deductions for Businesses & Self-Employed Individuals--fully up-to-date for 1999 and the Year 2000 tax season.
The homeowner deduction is a government subsidy that goes primarily to the affluent.