1032's enactment did not alter the well-settled rule that the fair market value (FMV) of stock is deductible as a business expense
if the payment of cash would have resulted in a deduction.
Paying for business expenses
with trade dollars leaves more cash available for the payment of strictly cash expenses.
Historically, training costs have been deducted currently as a business expense
Yet the court concluded the firm should treat the litigation costs in dispute as loans in the year the firm advanced them not as ordinary and necessary business expenses
The court also held that the break-up fees paid to the white knight were deductible as a business expense
under section 162, noting that "costs incurred to defend a business against attack are ordinary and necessary expenses.
One recurring source of that friction is the requirement that proper distinctions be drawn between capital expenditures and deductible ordinary and necessary business expenses
Even so, the court permitted the taxpayer to deduct the fees as ordinary and necessary employee business expenses
When the IRS scrutinizes company aircraft use, subsequent judicial decisions will be based on a taxpayer's ability to provide supporting documentation of the reasonable business expense
As repairs, the expenditures are deductible as ordinary and necessary business expenses
under section 162 of the Internal Revenue Code.
Wallendal claimed this interest as a trade or business expense
on his Form 1040; the Service held that these expenses were not deductible in computing his AGI.
The Commissioner, while admitting that under ordinary circumstances the cost of repairs would be deductible as a business expense
, argued that the repairs were part of the purchase of the vessel because they were intertwined with the sale itself:
Communication costs are usually the third greatest business expense
of a typical operating business and SmartSpend(TM) is designed to help businesses manage and control such costs.