deduction

That which is deducted; the part taken away; abatement; as deductions from gross income in arriving at net income for tax purposes. In the civil law, a portion or thing which an heir has a right to take from the mass of the succession before any partition takes place. Civil Code La. art. 1358.

See also charitable deduction

- deductible

- marital deduction

- orphan's deduction

@ itemized deductions

Those expenses which are allowed as deductions from adjusted gross income, itemized in detail under their appropriate captions, and subtracted to arrive at income subject to tax (e.g. taxes, charitable contributions, etc.). I.R.C. No.No. 161-188.

See also deductible

+ itemized deductions

Certain personal expenditures allowed by the Internal Revenue Code as deductions from adjusted gross income if an individual taxpayer chooses not to use the standard deduction and total itemized deductions exceed the standard deduction. Examples include certain medical expenses, interest on home mortgages, state income taxes, and charitable contributions

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- standard deduction

@ deduction for new

In marine insurance, an allowance or drawback credited to the insurers on the cost of repairing a vessel for damage arising from the perils of the sea insured against. This allowance is usually one third, and is made on the theory that the parts restored with new materials are better in that proportion than they were before the damage

@ deductions in respect of a decedent

Deductions accrued to the point of death but not recognizable on the final income tax return of a decedent because of the method of accounting used. Such items are allowed as deductions on the estate tax return and on the income tax return of the estate or the heir. An example of a deduction in respect of a decedent would be interest expense accrued up to the date of death by a cash basis debtor

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