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Tax deduction

What is a tax deduction?

A tax deduction is an expense that can be subtracted from a taxpayer's gross income to reduce the total taxable income. Deductions, therefore, lower the overall tax liability by decreasing the income that's subject to tax.

In more depth, tax deductions can come in many forms, from common ones like mortgage interest and charitable contributions for individuals to business expenses for companies. These business expenses can include costs related to running the business, such as office rent, employee salaries, and equipment purchases. As a founder, understanding what expenses can be deducted from your taxable income can significantly impact your startup's net income and overall tax strategy.

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Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

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