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LSDefine

Simple English definitions for legal terms

deduction

Read a random definition: gaveling man

A quick definition of deduction:

Deduction: Deduction in taxes means taking away some expenses from the total income to reduce the amount of taxes owed. This can include things like charitable donations, healthcare costs, and business expenses. However, the amount and types of deductions allowed vary depending on the tax laws and the individual or organization. Sometimes there is a minimum tax rate that must be paid regardless of deductions.

A more thorough explanation:

Deduction in tax law means an expense or item that can reduce the amount of taxes a person or organization owes in a given year. When an item is deductible, it is subtracted from the total taxable income, which can significantly reduce the amount of taxes owed.

  • Charitable contributions
  • Healthcare costs
  • Capital losses
  • Business expenses

For example, if an individual made $300,000 with a tax rate of 25%, the taxes would be $75,000. But if the individual had $50,000 worth of deductibles, that person would only owe $25,000 ($75,000 - $50,000 = $25,000).

However, there is a minimum tax rate of 10% for individuals with income over $100,000. So, if an individual made $300,000 and had $50,000 worth of deductibles, they would still have to pay the minimum of $30,000 ($300,000 * 0.1 = $30,000).

These examples illustrate how deductions can significantly reduce the amount of taxes owed, but the amount and types of deductions vary based on the jurisdiction and whether the tax is for an individual or organization.

deductible business expense | deed

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Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
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