Ordinary And Necessary Business Expenses

Definition of "Ordinary and necessary business expenses"

Tax term describing current and necessary business expenses. Ordinary and necessary business expenses do not include long-term capital losses. For example, the XYZ stationary store deducts their utility costs on their tax return as an ordinary and necessary business expense.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Property description contained in a title deed. A deed description is intended to inform a reasonable person where property is located. It can be described by metes and bounds, by ...

Under current tax law, real estate is depreciated under either the straight-line method or modified accelerated cost recovery system (MACRS) method. See also MACRS. ...

Depreciation method based on the anticipated useful life of the property, allowing for normal wear and tear. ...

The definition of a full covenant and warranty deed in real estate is a type of deed that includes a number of specific assurances that certain conditions will be met that go above and ...

Trust beneficiary of an individual who is legally entitled to the property and financial benefits of a trust whose title is in another name. ...

Heating system generating heat through radiation as opposed to a convection heating system. For example, baseboard heating is a radiant heating system where the heat from circulating hot ...

Average number of business days an office space is being used. ...

The definition of low-income housing is any house that is either rented or owned by an individual or family that has a monthly household income that does not exceed a certain percentage of ...

Map within a governmental jurisdiction showing the boundary lines and ownership of all real property. A cadastral program produces the cadastral map. ...

Popular Real Estate Questions