Ordinaryand Necessary Business Expenses
Barron's Real Estate Dictionary:
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Ordinaryand Necessary Business Expenses
A tax term that allows a current deduction for business expenses. Contrasted with capital expenditures and unreasonable expenses.
Example: Each day the apartment manager enjoyed a 3-martini lunch with his friend. He claimed a tax deduction for the lunch expense. The internal revenue service contested the deductions because they were not ordinary and necessary business expenses.
Example: Each day the apartment manager enjoyed a 3-martini lunch with his friend. He claimed a tax deduction for the lunch expense. The internal revenue service contested the deductions because they were not ordinary and necessary business expenses.
| Ordinary Loss, Ordinary Income | |
| Ore, Oreo, Orientation |
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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