DEDUCTION

deduction,n.1. The act or process of subtracting or taking away. 2.Tax. An amount subtracted

from gross income when calculating adjusted gross income, or from adjusted gross income when

calculating taxable income. — Also termed tax deduction. Cf. EXEMPTION(3); TAX CREDIT.

[Cases:  Internal  Revenue    3270–3516; Taxation    1031.1–1046.  C.J.S.  Internal  Revenue  §§  33,

55,  58,  63,  140,  146–205,  209–265,  267–268,  270–287,  329–330,  335,  409,  489,  671,  673,

799–800; Taxation §§ 1738–1755.]

additional standard  deduction.The  sum  of  the additional amounts that a taxpayer  who turns

65  or  becomes  blind  before  the  close  of  the  taxable  year  is  entitled  to  deduct.  [Cases:  Internal

Revenue    3295; Taxation    1031.1. C.J.S. Taxation §§ 1738–1739.]

charitable  deduction.A  deduction  for  a  contribution  to  a  charitable  enterprise  that  has

qualified for tax-exempt status in accordance with IRC (26 USCA) § 501(c)(3) and is entitled to

be deducted in full by the donor from the taxable estate or from gross income. See CHARITABLE

CONTRIBUTION(2);  CHARITABLE  ORGANIZATION.  [Cases:  Internal  Revenue    3337;

Taxation    1031.1. C.J.S. Internal Revenue §§ 186, 212, 215–222, 276; Taxation §§ 1738–1739.]

deduction in respect  of a  decedent.A deduction that accrues to the  point of  death but is not

recognizable  on  the  decedent’s  final  income-tax  return  because  of  the  accounting  method  used,

such as an accrued-interest expense of a cash-basis debtor.

itemized  deduction.An  expense  (such  as  a  medical  expense,  home-mortgage  interest,  or  a

charitable  contribution)  that  can  be  subtracted  from  adjusted  gross income  to  determine  taxable

marital  deduction.A  federal  tax  deduction  allowed  for  lifetime  and  testamentary  transfers

from  one  spouse  to  another.  IRC  (26  USCA)  §§  2056,  2523.  [Cases:  Internal  Revenue    4169.

C.J.S. Internal Revenue § 535.]

miscellaneous  itemized  deduction.Generally,  an  itemized  deduction  of  job  or  investment

expenses;  a  deduction  other  than  those  allowable  in  computing  adjusted  gross  income,  those

enumerated  in  IRC  (26  USCA)  §  67(b),  and  personal  exemptions.  •  This  type  of  deduction  is

allowed  only  to  an  itemizing  taxpayer  whose  total  miscellaneous  itemized  deductions  exceed  a statutory percentage of adjusted gross income.

standard deduction.A specified dollar amount that a taxpayer can deduct from adjusted gross

income,  instead  of  itemizing  deductions, to  determine  taxable  income.  [Cases:  Internal  Revenue

3295; Taxation    1031.1. C.J.S. Taxation §§ 1738–1739.]

3.  The  portion  of  a  succession  to  which  an  heir  is entitled  before a  partition.  4.  The  act or

process  of  reasoning  from  general  propositions  to  a  specific  application  or  conclusion.  Cf.

INDUCTION(2). — deduct (for senses 1–3), vb. — deduce (for sense 4), vb. [Blacks Law 8th]