deduction

deduction definition - business

deduction

An expenditure that may legally be used to reduce an individual's income-tax liability. Potential deductions include charitable contributions, mortgage interest expense, state and local income taxes, and property taxes. Also called itemized deduction, tax deduction, tax shield. See also charitable contribution deduction, standard deduction.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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