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A lawyer is a person who writes a 10,000-word document and calls it a 'brief'.
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Legal Definitions - ordinary and necessary expense
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Definition of ordinary and necessary expense
Definition: An expense that is normal or usual and helpful or appropriate for the operation of a particular trade or business and that is paid or incurred during the taxable year.
Examples:
- Office supplies
- Advertising costs
- Employee salaries and benefits
- Rent for business property
- Travel expenses for business purposes
These examples illustrate the definition because they are expenses that are common and necessary for running a business. They are considered tax-deductible because they are essential for the operation of the business.
It is better to risk saving a guilty man than to condemn an innocent one.
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Simple Definition
An ordinary and necessary expense is money spent to achieve a specific result, especially in business. It is a cost that is normal, helpful, and appropriate for the operation of a particular trade or business and is paid or incurred during the taxable year. Examples of ordinary and necessary expenses include rent, utilities, salaries, and supplies. These expenses are tax-deductible, meaning they can be subtracted from a business's income to reduce the amount of taxes owed.
Justice is truth in action.
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