Exemption
Property or income that is protected from seizure by creditors or from taxation. In bankruptcy, exemptions determine what property the debtor may keep.
Encyclopedia entry: Exemption
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exemption
Exemption is an immunity , exception , or freedom from the liability , duty , or other requirements, such as exemptions from taxation or execution for certain property, or exemptions from military conscription.
In particular, the exemption can refer to a privilege allowing a judgment debtor to retain certain property from being taken in execution, bankruptcy , or other procedures. Also termed debtor's exemption.
In tax law, it refers to the amount allowed as a deduction from gross income for the purpose of determining taxable income .
[Last reviewed in August of 2021 by the Wex Definitions Team
]
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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.