ordinary and necessary expense

Definition of "ordinary and necessary expense"
  1. A cost that is typically incurred, appropriate, and beneficial for the functioning of a specific industry or profession, and is spent in a particular tax year. This can also be identified as an ordinary and necessary business expense
How to use "ordinary and necessary expense" in a sentence
  1. The company's decision to upgrade its computer systems was seen as an ordinary and necessary expense.
  2. For tax purposes, the cost of maintaining the warehouse was considered an ordinary and necessary expense.
  3. The cost of procuring raw materials is an ordinary and necessary expense in the manufacturing business.

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