Question
What are tax deductions?
Interesting Question? 
(5) 
(6)
(5) (6)
Answers (1)
29th Oct 2009 by Mark P. Cussen, CFP, CMFC
A tax deduction is any expense that may be deducted from the income that the taxpayer or business has to report on the tax return. For individuals, everyone gets a standard deduction, unless they itemize. These deductions include such expenses as home mortgage interest, real estate taxes and charitable contributions. Individual taxpayers have two types of deductions: Above the line deductions, which are deducted to determine the taxpayer's adjusted gross income (AGI), and below the line deductions, which are deducted from AGI. The standard and itemized deductions fall into the latter category.
A tax deduction is any expense that may be deducted from the income that the taxpayer or business has to report on the tax return. For individuals, everyone gets a standard deduction, unless they itemize. These deductions include such expenses as home mortgage interest, real estate taxes and charitable contributions. Individual taxpayers have two types of deductions: Above the line deductions, which are deducted to determine the taxpayer's adjusted gross income (AGI), and below the line deductions, which are deducted from AGI. The standard and itemized deductions fall into the latter category.
Like This Answer? (0) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
(0) (0)
29th Oct 2009 In Tax
1 Answers | 73 Views
Subjects: tax,
tax deductions,