Asked by Bradley Tyszkiewicz on Apr 27, 2024
Verified
List and define the criteria for an expenditure to be deductible on Schedule C.
Schedule C
A financial document utilized by individual business owners to declare their business's earnings or deficits.
Deductible Expenditure
An expense that can be subtracted from gross income to reduce taxable income, often related to business or specified personal expenses.
- Identify deductible business expenses and understand the criteria for their deductibility.
Verified Answer
AA
Amena AyeshApr 30, 2024
Final Answer :
An expense should be ordinary,necessary,and reasonable.For an expense to be ordinary,it must be customary or usual in the taxpayer's particular business.The "necessary" criterion refers to an expense that is appropriate and helpful rather than one that is essential to the taxpayer's business.The expense must also be reasonable in amount and reasonable in relation to its purpose.
Learning Objectives
- Identify deductible business expenses and understand the criteria for their deductibility.
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