What is a "deduction"?

What is a "deduction"?

Gregg Wind (Partner, Wind Bermer Hockenberg, LLP) gives expert video advice on: What are some commonly overlooked small business deductions?; Can I deduct my car's purchase price as an expense?; Is my own health care plan deductible? and more...

When we talk about deductions we usually talk about income tax deductions or things that lower your taxable income. A deduction is something that is permissable by code to reduce your tax liability, to reduce the income that is subject to tax.