expense


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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.

expense

any expenditure which is chargeable to the trading activities of an accounting period. This includes cash expenditures on materials and labour, and non-cash items of expenditure such as credit purchases and depreciation.
References in periodicals archive ?
If a cleric's compensation includes a parsonage or housing allowance, which is excludable from gross income, the nondeductible business expense percentage is based on the ratio of the clergy's nontaxable to taxable income.
As a mid-l9th century Pennsylvania Supreme Court observed, the sue-and-labor clause "adds nothing to the duty of the insured and his agents, but merely expresses what would be the duty of the parties without it; that is, to use all proper exertions to save the property insured from total loss, and declares the duty of the insurer to contribute to the expense.
More year-to-year expense volatility - Annual changes in pension or postretirement benefit expense may be significantly greater under the new IAS, due to the proposed requirement that actuarial gains and losses outside of a 10-percent corridor and the effects of plan amendments for former employees be immediately recognized.
The Third Circuit held that Lincoln Sauings did not establish a "separate and distinct asset" test and that an expense may be a capital expense, even though there is no separate and distinct asset.
DALLAS -- Symphony Spend Management Solutions (SMS), a provider of software and outsourcing solutions that help clients effectively manage expenses, assets and workflow processes, today announced that it has received a "positive" rating in Gartner's recently-published "Marketscope for Telecom Expense Management, 2H06.
When IMC could no longer afford to pay N's salary, N offered to work without salary, provided IMC would reimburse him for expenses.
Since those rules are elective and the taxpayer avoids having to substantiate actual expenses, Continental must take the bad with the good--the permitted deduction does not necessarily represent the actual expense.
The annual statement of operating expenses for the base year serves as the foundation for calculating operating expense escalations for all future escalation years during the lease term.
9) The term necessary" imposes only the minimal requirement that the expense be helpful or appropriate for the development of the taxpayer's business.
274(n) limit on allowable meal expense deductions "shall be applied only once, either (1) to the person who makes the expenditure or (2) to the person who actually bears the expense, but not to both"; see Regs.