Expenditures that are subtracted in an effort to calculate the lowest possible taxable income are called

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Deductions are expenses that are subtracted from an individual's taxable income to reduce the amount of tax they owe. Deductions include things like contributions to retirement accounts, mortgage interest payments, and charitable donations. Exemptions refer to a set amount of income that can be excluded from taxation, which has been eliminated in recent years. Capital expenses refer to investments in long-term assets, and fixed expenses refer to regular, ongoing expenses that are typically similar from month to month.

Expenditures That Are Subtracted in an Effort to Calculate the Lowest