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tax deduction definition: Original post by Karen Farnen of Demand Media Investment losses can help reduce income taxes. http://photos2.demandstudios.com/DM-Resize/photos.demandstudios.com/getty/article/103/195/71077451.jpg?w=700&h=700&keep_ratio=1 John Foxx/Stockbyte/Getty Images The Internal Revenue Service provides a tax benefit for losses incurred on investments. The IRS calls this tax benefit a deduction, not a…

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