Tax-deductible


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Tax-deductible

The effect of creating a tax deduction, such as charitable contributions and mortgage interest.

Deduction

An amount of money that one may subtract from one's gross annual income when calculating one's income tax liability. A common misconception about tax deductions is that they represent a dollar-for-dollar reduction of one's tax liability. Rather, a deduction removes a certain dollar amount from the income the IRS uses to calculate the percentage of one's income that is owed in taxes. Common deductions are charitable contributions, business expenses, and interest on mortgages. See also: Tax credit.
References in periodicals archive ?
Tax-Deductible Contributions Received in 2016 Designated to IMA Initiatives and Its Overall Annual Giving Campaign
The House should approve SB 40, and give Oregonians greater confidence that any tax-deductible contribution will make the state and the world a better place.
The bureau also concluded that Kobe Steel concealed part of its income by reporting the money it paid to precision machinery export dealers as commission fees and that paid to a subsidiary as business contracting fees even though both payments cannot be treated as tax-deductible expenses, according to the sources.
Authorizing insurers to establish tax-deductible reserves for potential catastrophic events has been advanced as a means to enhance industry capacity, but according to some industry analysts such reserves would lower federal tax receipts and not necessarily bring about a meaningful increase in capacity because insurers may substitute the reserves for other types of capacity.
With contributions being tax-deductible, the policyholder may qualify for a lower income-tax liability.
If they become tax-deductible, more people would be getting them.
This form allows you to make a tax-deductible donation of either cash or shares of stock received through the AICPA Insurance Trust distribution.
But as it turns out, every tax-deductible cent donated to the AFLPA goes not to New York City firefighters or Cantor Fitzgerald widows, but rather to spay/neuter programs for Missouri's dogs and cats.
Business owners and employees may find life insurance a good addition to a qualified plan because premiums are tax-deductible, said LaBombard.
Our tax-deductible dinner will be held at the Back Bay Hilton, 40 Dalton Street, Boston--right across from the Race Expo.
A number of individuals and organizations recently displayed their belief and commitment to the accounting profession by making a tax-deductible contribution to the ongoing $100,000 NSA Educational Tree Campaign.
As well as serving as a useful conservation tool, an easement can both qualify as a tax-deductible gift and significantly reduce property and estate taxes.