nondeductible


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non·de·duct·i·ble

 (nŏn′dĭ-dŭk′tə-bəl)
adj.
Not deductible, especially for income-tax purposes.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

nondeductible

(ˌnɒndɪˈdʌktəbəl)
adj
(Accounting & Book-keeping) not able to be deducted
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

non•de•duc•ti•ble

(ˌnɒn dɪˈdʌk tə bəl)

adj.
1. not able to be deducted.
2. not allowable as a tax deduction.
[1940–45]
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Adj.1.nondeductible - not allowable as a deduction
deductible - acceptable as a deduction (especially as a tax deduction)
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
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Notice 2018-99 provides guidance on how to determine the nondeductible portion of parking expenses in instances when the employer pays a third party to provide the parking and in instances when the taxpayer owns or leases a parking facility for the use of its employees.
Per IRS Publication 541, a partner's adjusted basis decreases for "partner's distributive share of nondeductible partnership expenses that are not capital expenditures." In essence, partners receive no tax loss for nondeductible expenses at the K-l level and consequently recognize a larger taxable gain upon disposition of the partnership interest because of the lower adjusted basis derived from the nondeductible expenses.
(See Trusted Advice, "Deducting IRA Contributions.") However, all eligible workers and spouses can make nondeductible contributions to a traditional IRA, regardless of income.
Rollovers, conversions, nondeductible contributions and inherited accounts can all have an impact on how distributions are taxed.
The practical effect is that a taxpayer must recover any nontaxable amount (basis) ratably as distributions are received, by tracking basis on Form 8606, Nondeductible IRAs.
A taxpayer has basis in an IRA to the extent of nondeductible contributions made to the IRA, minus any withdrawals and distributions of previously taxed contributions.
162(f) to clarify and limit the types of nondeductible expenditures that are deemed to violate public policy.
So if you've maxed out your 401(k) or 403(b) contributions and don't qualify to make Roth IRA contributions because of your income level, you still can make nondeductible contributions to a traditional IRA in 2009 and 2010 and then convert it to a Roth IRA in 2010.
Some owners, however, make nondeductible contributions to their IRAs that, if withdrawn, would be considered a tax-free return of nondeductible contributions.
However, we can divide these into two main categories, deductible IRAs and nondeductible IRAs.
As important, there are a host of court decisions that provide guidance to distinguish between nondeductible fines and penalties and deductible amounts, such as restitution or other compensatory payments.
Examples include research and development tax credits, foreign income, nondeductible book accruals and tax carryover benefits.