Simple English definitions for legal terms
Read a random definition: business meeting
An ordinary and necessary expense is money spent to achieve a specific result, especially in business. It is a cost that is normal, helpful, and appropriate for the operation of a particular trade or business and is paid or incurred during the taxable year. Examples of ordinary and necessary expenses include rent, utilities, salaries, and supplies. These expenses are tax-deductible, meaning they can be subtracted from a business's income to reduce the amount of taxes owed.
Definition: An expense that is normal or usual and helpful or appropriate for the operation of a particular trade or business and that is paid or incurred during the taxable year.
Examples:
These examples illustrate the definition because they are expenses that are common and necessary for running a business. They are considered tax-deductible because they are essential for the operation of the business.