Business Expense


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Business Expense

Costs that result from having and maintaining a business. Rent and employee salaries are primary (and expensive) examples of business expenses, as are office supplies and raw materials from which to make products. Under most circumstances, business expenses are tax deductible.
References in periodicals archive ?
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 vs.
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.

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