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Deduction
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DeductionAn expense that is allowable as a reduction of gross taxable income by the IRS.
RELATED TERMS--------------------------------------
Expense
Expense refers to the amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures).
Gross
A sum without deduction or set off, i.e., without deduction of taxes from a person's income.
Income
Money received by an individual as a salary, or from investments. Cash deposits and bonds will provide income in the form of interest. Shares will, in most but not all cases, provide income in the form of twice-yearly dividends.
SIMILAR TERMS--------------------------------------
Deductible
An amount or period which must be deducted before an insurance payout or settlement is calculated.
Deductible contribution
Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes.
Deductive reasoning
Using known facts to draw a conclusion about a specific situation.
PREVIOUS AND NEXT TERMS--------------------------------------
Declaration of Trust
A trustee that holds the trust assets in his or her name.
Dedicated capital
Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.
Dedication strategy
Refers to multiperiod cash-flow matching.
Deductible
An amount or period which must be deducted before an insurance payout or settlement is calculated.
Deductible contribution
Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes.
Deduction
Deductive reasoning
Using known facts to draw a conclusion about a specific situation.
Deep discount bond
A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond.
Deep in the money
A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price.
Deep out of the money
A call option with an exercise price substantially above the market price. Also put option with an exercise price substantially below the underlying stock's market price.
Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.
RELATED TERMS--------------------------------------
Expense
Expense refers to the amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures).
Gross
A sum without deduction or set off, i.e., without deduction of taxes from a person's income.
Income
Money received by an individual as a salary, or from investments. Cash deposits and bonds will provide income in the form of interest. Shares will, in most but not all cases, provide income in the form of twice-yearly dividends.
SIMILAR TERMS--------------------------------------
Deductible
An amount or period which must be deducted before an insurance payout or settlement is calculated.
Deductible contribution
Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes.
Deductive reasoning
Using known facts to draw a conclusion about a specific situation.
PREVIOUS AND NEXT TERMS--------------------------------------
Declaration of Trust
A trustee that holds the trust assets in his or her name.
Dedicated capital
Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.
Dedication strategy
Refers to multiperiod cash-flow matching.
Deductible
An amount or period which must be deducted before an insurance payout or settlement is calculated.
Deductible contribution
Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes.
Deduction
Deductive reasoning
Using known facts to draw a conclusion about a specific situation.
Deep discount bond
A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond.
Deep in the money
A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price.
Deep out of the money
A call option with an exercise price substantially above the market price. Also put option with an exercise price substantially below the underlying stock's market price.
Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.
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This dictionary contains 24549 terms.
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