1. That which is deducted; that which is subtracted or removed
  2. A sum that can be removed from tax calculations; something that is written off
    You might want to donate the old junk and just take the deduction.
  3. A conclusion; that which is deduced, concluded or figured out
    He arrived at the deduction that the butler didn't do it.
  4. The ability or skill to deduce or figure out; the power of reason
    Through his powers of deduction, he realized that the plan would never work.
  5. A process of reasoning that moves from the general to the specific, in which a conclusion follows necessarily from the premises presented, so that the conclusion cannot be false if the premises are true.
  6. A conclusion reached by this process

The above text is a snippet from Wiktionary: deduction
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