Deductions for Business and Investment Expenses
Learn about allowed deductions for the costs of doing business or producing income.
Transcript
Introduction and General Rule
In this lesson, we'll survey the deduction for ordinary business expenses under Section 162(a) of the Internal Revenue Code, or IRC.
Section 162(a) allows a deduction for, quote, "ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business," unquote. This language gives us five discrete elements.
Ordinary and Necessary Expenses Paid or Incurred During the Taxable Year
First, the expense must be ordinary. Primarily, ...