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Related to Deduction: tax 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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


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.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
Although the compensation expense deduction can be avoided under the modified prospective method, the impact on the APIC pool cannot be avoided.
With respect to pass-through entities, such as partnerships, S corps and estates, the DMD is determined at the partner, shareholder or owner-level by taking into account its distributive or proportionate share of income, loss, gain, deduction and COGS.
Of course, before proceeding with a conservation easement donation, potential easement donors are always advised to consult with their attorneys and tax professionals to understand the specific legal requirements and tax consequences associated with conveying a conservation easement and receiving a tax deduction.
Nevertheless, we submit that reasonable allocation rules for the charitable contribution deduction can be developed that are congruent with, and indeed advance, the national interest in encouraging charitable contributions.
Anyone who took a home-office deduction last year must now review their eligibility for this write-off carefully.
The same additions to the standard deduction also apply to those who are blind.
Claim all charitable deductions: Individuals should be sure to determine miles driven for charitable purposes, such as when driving children to a volunteer worksite.
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.
Understanding the significant differences between the rules in Notice 2005-14, the amendments made by the Technical Corrections Act, and the new guidance in proposed regulations is critical to properly calculating the deduction under section 199.
Detailed certification and inspection requirements, involving qualified professionals, must be satisfied before the deduction may be taken.