Income Tax
In income tax calculation, a write-off is the itemized deduction of an item's value from one's taxable income. Thus, if a person in the USA has a taxable income of $50,000 per year, a $100 telephone for business use would lower the taxable income to $49,900. If that person is in a 25% tax bracket, the tax due would be lowered by $25. Thus the net cost of the telephone is $75 instead of $100.
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