Asked by Paulina Martinez on Jun 03, 2024
Verified
Which expenses incurred in a trade or business are deductible?
A) Fines and penalties.
B) Supplies expenses.
C) Political lobbying expenses.
D) Bribes.
Deductible Expenses
Expenses eligible to reduce taxable income, subject to various tax rules and limitations.
Supplies Expenses
Costs incurred by a business for items that are used and consumed in the business operations, typically within a short period.
- Determine the tax implications and deductibility of particular business expenditures.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
B
Explanation :
Supplies expenses directly related to the trade or business are considered deductible expenses.
Answer: C
Political lobbying expenses are generally not considered deductible expenses, except for certain limited circumstances.
Answer: A and D
Fines and penalties as well as bribes are not considered deductible expenses for any trade or business.
Answer: C
Political lobbying expenses are generally not considered deductible expenses, except for certain limited circumstances.
Answer: A and D
Fines and penalties as well as bribes are not considered deductible expenses for any trade or business.
Learning Objectives
- Determine the tax implications and deductibility of particular business expenditures.