Definition, Meaning & Synonyms
deductibility
noun
/dɪˌdʌk.tɪˈbɪl.ɪ.ti/
Definition
The ability to subtract an expense from taxable income when calculating tax liability.
Examples
- The deductibility of mortgage interest can lead to significant tax savings for homeowners.
- It’s important to understand the deductibility of various business expenses before filing your taxes.
- Some charitable donations qualify for full deductibility, encouraging people to contribute more.
Meaning
Deductibility refers to the characteristic of an expense that allows it to reduce taxable income, leading to lower taxes owed.
Synonyms
- substraction
- tax exemption
- write-off
