Deductible

Sure, the word “deductible” has a specific meaning in accounting and taxation.

Deductible refers to expenses that are subtracted from your taxable income, reducing the amount of tax you owe. These expenses must meet certain criteria to be deductible, and the specific deductions available vary depending on your country and circumstances.

Here are some examples of deductible expenses:* Mortgage interest* Interest on loans* Charitable contributions* Business expenses (e.g., travel, entertainment, equipment)* Medical expenses

Here are some examples of expenses that are not deductible:* Personal expenses (e.g., clothing, entertainment, eating out)* Gifts* Expenses used to generate income (e.g., rent, depreciation)

It is important to consult with a tax professional to determine the specific deductions you are eligible for.