tax deduction

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Tax deduction

An expense that a taxpayer is allowed to deduct from taxable income.

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.

tax deduction

See deduction.

tax deduction

An expense allowed as a reduction of taxable income.The most common individual deductions are for home mortgage interest,ad valorem and sales taxes,moving expenses associated with a job, charitable giving, and health-care costs. Virtually all expenses associated with income-producing property are deductible, including noncash expenses such as depreciation. Virtually all operating expenses for a business are deductible, except that capital expenditures (a new roof, expansion of building, purchase of equipment) must be capitalized and depreciated over time unless falling within the Section 179 limits. Section 179 lets a taxpayer deduct as expenses certain things that would otherwise have to be capitalized.

References in periodicals archive ?
* PRINCIPAL PAYMENTS ON ESOP loans are tax deductible to the corporation and dividends are deductible if they are either distributed to participants in cash or used to pay principal or interest on an ESOP loan.
Victorian Pride Centre Limited will be tax deductible from 9 March 2018 to 8 March 2023
Ryan stated during his introductory remarks that if mortgage insurance was in fact tax deductible, 300,000 more families would be eligible to buy homes.
"The reason for the ignorance is that the tax rules for general business entertaining are completely different, as such expenses are not tax deductible nor is the VAT recoverable."
* Deferred tax assets: Recognized when temporary differences will result in tax deductible amounts in future years and for carryforwards.
And never underestimate the power of air conditioning, which can even be tax deductible if you get your doctor to write you a prescription for it.
The IRS mulls making the cost of weight-loss programs tax deductible. Anti-fat groups lobby with the message that excess weight is closely tied to disease.
The money you paid for this book is 100% tax deductible. In fact, you can deduct twice as much, just by going out and buying a second copy."
I think that we need to go further and also make long term care insurance fully tax deductible."
Other such circumstances will be identified in the new Small Business Guide to Tax Deductible Benefits, due out later this year, which is being prepared by Total Administrative Services Corporation, the parent company of FlexSystem.
Regardless of how the plan acquires stock, company contributions to the trust are tax deductible (within certain limits).
But then you see the fine print - "Contributions are not tax deductible." Jeez - don't they have tax deductions for pornographic art and other filth?