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