Ordinary And Necessary Business Expenses

Definition of "Ordinary and necessary business expenses"

Millicent Williams real estate agent
Millicent Williams, Real Estate Agent Coldwell Banker HPW

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.

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