I don't understand this sentence

Question

For the definition of the word expense as a verb [with object]: Offset an item (as an item of expenditure) as an expense against taxable.

My financial vocabulary knowledge isn't great and I don't understand the meaning of offset here and the 'against' bit.

I would like to improve my English language skills I am actually an engineering graduate, but I am not very literate. I always come across sentences I don't know the meaning of, and it's particularly difficult in definitions of words I don't know the meaning of.

It would help me a lot to be able to post sentences I don't fully understand on here.

Thank you!

AlpheccaStars · Accepted Answer

class hat 91It would help me a lot to be able to post sentences I don't fully understand on here.

Please do so, as much as you like. That is what we are here for.

class hat 91Offset an item (as an item of expenditure) as an expense against taxable.

We pay a certain percentage of our "taxable income" to the government every year.

For example, in 2017, I earned $20,000 from a job I had January-March. Then I changed jobs and earned $80,000 from April to December. My total income was $100,000. But there are expenses that I can deduct, such as paying the job hunter $2000 and $5000 in job-hunting travel expenses, and so on. These expenses are subtracted (offset, deducted) from my income to get a total taxable income.

Businesses try to offset their income with expenses to reduce the amount of taxes that they pay. The legitimate deductions are written against their gross profits.

I am not a tax expert, and this language (offset, against, deduction) is specific to accountancy. It is not everyday English!

CalifJim · Answer

class hat 91Offset an item (as an item of expenditure) as an expense against taxable income.

It is always a great help to us if you quote material from other sources accurately.

To expense an amount is essentially to claim it as an expense which may be deducted from income, thereby reducing taxes on total income.

(You can say that the expensed amount is deducted from the amount of income, or you can say that this amount offsets the amount of income. It means the same thing. Figuratively, the deducted amount "goes against" the original amount.)

CJ

I don't understand this sentence

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