Expenses


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Related to Expenses: living expenses, Operating expenses

Expenses

Costs of living or doing business. Examples of personal expenses include the mortgage payment, groceries, and gas for the car. Examples of business expenses include the cost of materials, employee salaries, and other overhead. Expenses also include unusual costs like medical bills or employee bonuses. Businesses attempt to keep costs to the lowest possible amount without sacrificing revenue. This maximizes profit. Likewise, households generally attempt (and in many cases must) keep expenses lower than household income. While business expenses are generally tax deductible, most personal expenses are not.

expenses

The cost of maintaining property or generating income.

Expenses

For federal income tax purposes, expenses are divided into four categories:

Trade or business expenses,

Expenses in connection with production of income, in connection with management, conservation, or maintenance of property held for production of income,

expenses in connection with the determination, collection, or refund of any tax, and

Personal, family, or living expenses.

Expenses in the first three categories are generally deductible in determining taxable income. Expenses in the fourth category are not deductible, except in a few cases (medical expenses, charitable contributions, etc.) in which they are specifically allowed by law. Expenses are to be distinguished from "capital expenditures," defined elsewhere in this glossary.
References in periodicals archive ?
Thus, the argument that every lessee ultimately bears the lessor's expenses ignores the distinction framed by the statute and regulations.
Expense General Ledger Allocations - Allows general ledger accounts to be associated with expense items for streamlining integration of data with accounting systems.
Repair and maintenance costs dip, fixed expenses climb, administrative expenses rise slightly.
Second, as employees, most clerics can be reimbursed by their organization for business expenses without any income tax consequences as long as the reimbursement is through an "accountable plan.
The solution includes support for all expense process features, including manager approval, accounts payable review, re-submission, short pay, rejection and audit.
Indeed, the language used by the court in this case is at once so broad and nebulous that it undermines the ordinary and necessary' character of expenses long held to be currently deductible.
2 contain detailed information on income, expenses, and portfolio composition for the years 1985 through 1991.
As travel and entertainment expenses usually account for an organization's second largest indirect cost, proper management of this spending can have a significant effect on the bottom line," said Frank Dombroski, Vice President, Commercial Card Solutions, JPMorgan Chase.
Specifically, interest and expenses not directly allocable and apportioned to any specific income-producing activity (such as certain expenses relating to supportive functions, R&E expenses, stewardship expenses and legal and accounting expenses) must generally be allocated and apportioned as if all members of an affiliated group were a single corporation.
A lender making, purchasing, renewing or renegotiating a loan, may incur a variety of expenses to third parties in connection with such loan, such as broker commissions, appraisals, and environmental and engineering reports.
Revenue procedure 96-64 says 40% of a per diem paid for lodging, meals and incidental expenses is treated as having been paid for food and beverages when the amount is less than the federal rate.