Advertisement - Continue reading below

Definition of "tax deduction" []

  • A reduction in the gross amount on which a tax is calculated; reduces taxes by the percentage fixed for the taxpayer's income bracket (noun)

WordNet. Princeton University. 2010.

Use "tax deduction" in a sentence
  • "The business-use percentage becomes an immediate tax deduction as an expense or through depreciation."
  • "By using this strategy, Bob created a $1,500-per-year tax deduction 50 weeks × $30 per week."
  • "You must use the straight-line method, which give you approximately half the tax deduction the first year of the MACRS method."
Words like "tax deduction"