30:. In other words, the income over which the government imposed tax. Generally, it includes some or all items of income and is reduced by expenses and other deductions. The amounts included as income, expenses, and other deductions vary by country or system. Many systems provide that some types of income are not taxable (sometimes called non-assessable income) and some expenditures not deductible in computing taxable income. Some systems base tax on taxable income of the current period, and some on prior periods. Taxable income may refer to the income of any taxpayer, including individuals and corporations, as well as entities that themselves do not pay tax, such as partnerships, in which case it may be called “net profit”.
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includes all income realized from whatever source but excludes particular tax-exempt items, such as municipal bond interest. In 2010, the United
Kingdom and the United States both provided reduced rates of tax for capital gains and dividends.
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61:. Many systems limit some sorts of business deductions. For example, deductions for automobile expenses are limited in the United Kingdom and the United States.
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for some types of income. Many systems impose tax at different rates for differing types (e.g., capital gains or salaries) or levels of income (e.g.,
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for certain nonbusiness expenses (sometimes called personal or domestic expenses). Such outlays may include personal expenses, such as a
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or a minimum deemed amount of personal deductions. The United States federal tax system allows a deduction for
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in lieu of other personal deductions. Some states in the United States allow few personal deductions.
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Most systems and jurisdictions allow businesses to reduce taxable income by
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37:(or derived) be included in taxable income. Some systems provide
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16:Base upon which an income tax system imposes tax
161:, January 23, 2012, Retrieved December 4, 2013
221:Sec. 1.212-1 Nontrade or nonbusiness expenses
209:Business income, deductions and tax returns
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33:Most systems require that all income
57:or other property sold, as well as
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22:refers to the base upon which an
118:Income tax in the United Kingdom
70:home mortgage interest deduction
59:deductions for business expenses
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45:). In the United States,
190:Income tax-exempt funds
159:What is taxable income?
113:Income tax in Hong Kong
103:Income tax in Australia
84:, as well as a minimum
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171:Allowable Deductions
108:Income tax in Canada
74:income tax threshold
82:personal exemptions
78:personal allowances
64:Some systems allow
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176:2014-02-17 at the
86:standard deduction
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234:Categories
134:References
98:Income tax
24:income tax
250:Tax terms
193:Archived
174:Archived
92:See also
35:realized
28:tax
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