deductible business expense
An expense which must be an 1) ordinary and 2) necessary 3) expense 4) that was paid or incurred during the taxable year 5) in carrying on 6) a trade or business activity, in order to be deductible. See 26 U.S.C. § 162(a).
Definition from Nolo’s Plain-English Law Dictionary
An expenditure that is ordinary and necessary for running a business and deductible from the businesss gross receipts so that it is not counted toward taxable income.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:14 pm
