deduction

Definitions (3)
Related Terms
1. Accounting: Business expenses or losses which are legally permitted to be subtracted from the gross revenue of a firm in computing its taxable income.
2. Logic: See deductive reasoning.
3. Taxation: Fixed amount or percentage permitted by taxation authorities that a tax payer can subtract from his or her adjusted gross income to arrive at the taxable income.

Use 'deduction' in a Sentence

Mitzi was relieved to hear all employees at Flotsam & Jetsam would be receiving health coverage, but miffed when told it would result in yet another deduction from her weekly take home pay.
17 people found this helpful
I was doing my taxes and realized I have spent money in charitable ways so I decided to use a deduction.
14 people found this helpful
When the warehouse was flooded, and all the goods there lost, the company was able to take a deduction in their taxes for the cost of the goods lost.
14 people found this helpful


Notable Quotable

Deducting Business Travel Expenses
"You can deduct travel costs related to setting up a new business as long as the trade or business you are in is the same as you engaged in previously, as someone else’s employee. For example, if you work for a management consulting firm and decide to go out on your own, incurred costs while setting up your new business are deductible."
- Unknown