Deductible Loss – a taxpayer’s loss that may be deducted in computing net taxable income, such as losses as a result of property being destroyed, damaged, confiscated, stolen, abandoned, taken by foreclosure, or becoming entirely worthless from other special losses, such as embezzlement or theft, provided the losses are not fully compensated by the insurance or otherwise

deductible loss:
(1905)

1. A taxpayer’s loss that may be deducted in computing net taxable income, as when the loss occurred as a result of embezzlement or theft.  See Alison v. U.S., 344 U.S. 167, 170, 73 S.Ct. 191, 192 (1952). [1]

1. Losses resulting when a taxpayer’s property is destroyed, damaged, confiscated, stolen, abandoned, taken by foreclosure, becomes entirely worthless or suffers other special losses, which a taxpayer is permitted to deduct in computing his net income for tax purposes providing the losses are not fully compensated by the insurance or otherwise.  34 Am J2d Fed Tax ¶ 6500. [2]

deductible:

1. In tax law, expenses that a taxpayer is permitted to subtract, in whole or in part, in computing her taxable income.  EXAMPLES: interest on the mortgages on one’s home; casualty losses; charitable contributions.  See deduction.

2. In insurance, portion of a loss that the insured must pay from his own pocket before the insurance company will begin to make payment.  USAGE: “Because my policy has a $500 deductible, my insurance company will pay only $2,000 of the $2,500 damage to my car.

3. That which may be subtracted. [3]

References:

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[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black, Editor in Chief Bryan A. Garner. ISBN: 978-0-314-61300-4

[2]: Ballantine’s Law Dictionary with Pronunciations
Third Edition by James A. Ballantine (James Arthur 1871-1949).  Edited by William S. Anderson.  © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY.  Library of Congress Catalog Card No. 68-30931

[3]:  Ballantine’s Law Dictionary Legal Assistant Edition by Jack Ballantine (James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.

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