Pre-Maaser Deductions

Are there any legitimate deductions that can be made before calculating income for Maaser Kesofim?

One may not deduct living expenses, such as rent or food and clothing purchases. However, income tax, Social Security tax and disability insurance can be deducted, because they are paid on one’s income by government mandate and are not considered revenue. Sales tax and real estate tax, on the other hand, cannot be deducted, because these are considered living expenses for one’s purchases and acquisitions (Igros Moshe YD 1:43).

By the same token, business expenses are not considered revenue and can be deducted. Some examples of business expenses are employees’ salaries, business insurance, and business travel costs. If one uses a car exclusively for business, the cost of the car as well as car insurance, gasoline, and repairs are treated as business expenses.

The Gerald & Karin Feldhamer OU Kosher Halacha Yomis is dedicated to the memory of Rav Yisroel Belsky, zt"l, who served as halachic consultant for OU Kosher for more than 28 years; many of the responses in Halacha Yomis are based on the rulings of Rabbi Belsky. Subscribe to the Halacha Yomis daily email here.