Ordinary and Necessary Business Expenses

Ordinary and Necessary Business Expenses means:
a tax provision that allows a current deduction for business expenses; contrast with the entry ed with capital expenditure and unreasonable expense. An ordinary and necessary business expense of a sole proprietor would appear on Schedule C of Former Federal Tax Form (check here if the Form is current) 1040. Former IRC (check if this IRC provision is current here) §§ 162(a) and 212.

See Tax Forms in the Encyclopedia.