applies to an expense that can be used to reduce taxable income. Interest on housing and AD valorem taxes are generally tax deductible. depreciation, repairs, maintenance, utilities, and other ordinary and necessary expenses are tax deductible for businesses.
expense that generates a tax deduction. For individuals, some tax deductible items include charitable contributions, mortgage interest, investment interest, state, local and foreign taxes, casualty and theft losses, medical expenses, and unreimbursed business expenses. In some cases, taxpayers must meet a minimum threshold before an expense is deductible. For example, unreimbursed medical expenses are deductible if they exceed 7.5% of Adjusted Gross Income (AGI) in a tax year, and casualty and theft losses must exceed 10% of AGI before they are deductible. In order to deduct miscellaneous expenses, they must total at least 2% of adjusted gross income. If that threshold is reached, such expenses as professional dues and subscriptions, employer-required equipment or uniforms, unreimbursed business travel and entertainment expenses, investment and tax advice, moving expenses, and some home office expenses are deductible. For businesses, the costs of doing business are generally tax deductible.
a type of expense that is allowed under tax law. Tax deductible expenses can be used to reduce taxable income.
Example: interest and ad valorem taxes are generally tax deductible for all types of property. depreciation, repairs, maintenance, utilities, and other ordinary and necessary expenses are tax deductible for income property
