Depreciation

Is a deduction allowed for the reasonable wearing out of assets used in business or held for the production of income. ex. machinery,

Capital Improvement

An improvement made to extend the useful life of a property or add to its value. Major repair such as the replacement of a roof are considered to be capital improvement. The cost of capital improvements to business property must be capitalized and may be depreciated.

Capital Gain

The gain from the sale or exchange of a capital assets; such as stock or real estate. The gain is the difference between a selling price exceeds the purchase price of any investment such as property (real estate), stock or bonds, and goodwill.

Basis of Stock

The cost basis of any stock or investment it goes to the original value of an asset purchased, If the stock is received as a gift, basis is generally from the previous owner or the fair market value when received. See also in publication 551 

Adjustment to Income

An expense which may be deducted even if the taxpayer does not itemize deductions. Adjustment to income are subtracted from gross income to arrive at adjusted gross income.

Taxpayer Child

Includes the taxpayer's natural child, step-child, or a child placed for legal adoption regardless of when the child came to live with the taxpayer; also, any other child whom the taxpayer cared for as his own child for the entire year unless the child's natural or adoptive parents provided over half of the child support.

Support

The total amount provided on behalf of an individual. Support includes food, lodging, and other necessities as well as recreation and other nonessential expenditures. Support is not limited to necessities and can be as lavish as the taxpayer can afford.