Taxable income is defined as the amount left after which of the following is deducted?

Taxable income is calculated by taking gross income and subtracting all applicable deductions, exemptions, and losses. This definition is crucial because it outlines how taxable income is effectively determined. Gross income refers to all income earned by an individual or business before any deductions are made.

Deductions can include various expenses such as business expenses for self-employed individuals, specific itemized deductions for individuals, and the standard deduction available based on filing status. Exemptions may involve personal exemptions or additional exemptions based on dependents. Losses can come from other businesses or investments that were unsuccessful, and these can also reduce taxable income.

Understanding that taxable income is the amount left after all these deductions, exemptions, and losses allows individuals and businesses to calculate their tax liability accurately. It highlights the importance of record-keeping for all potential deductions and ensures that taxpayers can maximize their tax efficiency.