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exemption business definition
- An annual deduction permitted a taxpayer and each dependent for use in computing taxable income. An extra exemption is allowed for being blind or for being 65 years of age or older. The size of the annual exemption is altered each year according to the level of inflation. Also called personal exemption.
- The amount of income that can be subtracted from adjusted gross income when calculating the alternative minimum tax.
- See homestead exemption.
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