Nondeductible for Dummies
pronunciation: nɑndɪ'dʌktɪbʌlWhat does Nondeductible really mean?
Nondeductible means that something cannot be subtracted or taken away from another thing. It's like having a cookie jar that you can't take cookies out of. Let's say you have ten cookies in your jar, but you decide that four of them are "nondeductible," which means you can't eat or take those four cookies out of the jar. So, even though you have ten cookies, you can only eat or take away six because the other four are not deductibles.
In a more serious context, the word "nondeductible" is often used in taxes. When we talk about something being "deductible" in terms of taxes, it means that you can subtract or reduce the amount of money you need to pay in taxes. However, when we say something is "nondeductible" in taxes, it means that you cannot subtract or reduce the amount, so you're stuck with paying the full amount.
Think of it like this: Imagine your earnings from working are a big cake. Usually, when you have deductions, it's like slices being taken out from that cake. But when something is "nondeductible," it's like a slice of cake that can't be taken away. So, no matter how many slices you try to take out, the "nondeductible" slice will always remain, and you'll have to pay taxes based on the whole cake.
Just remember, "nondeductible" means that whatever it refers to cannot be taken away, reduced, or subtracted from something else, whether it's cookies from a jar or slices from a cake.
Revised and Fact checked by Olivia Brown on 2023-10-29 12:41:13
Nondeductible In a sentece
Learn how to use Nondeductible inside a sentece
- Purchasing a luxury item like an expensive watch is an example of a nondeductible expense because it cannot be subtracted from your taxable income.
- The cost of going on a vacation for personal reasons is another example of a nondeductible expense since it does not qualify for tax deductions.
- If you donate money or items to a charitable organization, it may be tax-deductible, but if the same amount is given as a gift to a friend, it becomes nondeductible.
- Expenses incurred for hobbies, such as buying art supplies for personal painting projects, are usually considered nondeductible since they are not related to a business or income-generating activity.
- If you pay for personal gym memberships or fitness classes, those expenses are generally nondeductible as they are not related to improving or maintaining the health of a business or profession.
Nondeductible Antonyms
Words that have the opposite context of the original word.