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.

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

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.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
As I have written before, even if you have to file an extension, it may be worth it to receive these special tax deductions.
The couple would be able to claim up to a $10,000 tax deduction based on the fair market value of the stock on the day the gift is made.
Regardless of your income, however, you add the amount of tax you paid for motor vehicles (leased or purchased), aircraft, boats, residences, or home building materials to the amount from the IRS tables to determine your total allowable sales tax deduction. If all the allowable sales tax deduction amount exceeds the income tax deduction amount, deduct the sales tax rather than the income tax.
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!
Medical expenses for treating certain illnesses are eligible for a tax deduction up to ` 40,000, or ` 60,000 for senior citizens.
To claim a tax deduction, you need to give a certificate (in a prescribed format) of treatment from doctors of government hospitals.
Investment in cultural facilities, such as libraries and museums, will receive the same tax deduction that is given to job-creating investments, while corporate entertainment spending on cultural events and activities will be made tax deductible.
PRINCETON, NJ -- Americans make it clear they want to keep common federal income tax deductions, regardless of whether the proposed elimination of those deductions is framed as part of a plan to lower the overall income tax rate or as a way to reduce the federal budget deficit.
We show that, if the private insurance is a policy with an upper limit, then the government may have an incentive to provide a tax deduction for net losses to individuals.
Conversely, the House bill extends the tax deduction for energy-efficient commercial building expenditures through 2013.
House Bill 2462 would do that by doubling the state tax deduction for the Oregon College Savings Plan.
Swedish investor Hakon Invest AB said on Tuesday (6 March) that the National Tax Board is allowing Hakon Invest a tax deduction with regard to the change in value of the shareholding in the Dutch company Royal Ahold.