Above the Line

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Above the Line

1. Income and expenses a company incurs in its day-to-day operations. Above the line items increase or decrease the company's profit. These items are called above the line because they do not deal with how profits or losses are distributed. See also: Below the line.

2. Advertising in which a company buys space or airtime as opposed to only paying commissions on the revenue earned from the advertising. For example, a commercial on television is above the line, while telemarketing is not.

3. A tax deduction one takes on one's gross income instead of one's adjusted gross income.

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