16:16
prolly named veronica or sarah
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Warning
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LSDefine
Simple English definitions for legal terms
trade or business
Read a random definition: percentage-of-completion method
A quick definition of trade or business:
Trade or Business: A trade or business is any activity that someone does to make money. If someone can show that they are trying to make a profit, they can take certain expenses off their taxes as trade-or-business expenses.
A more thorough explanation:
Definition: Trade or business refers to any business or professional activity that a taxpayer engages in with the intention of earning a profit. If the taxpayer can demonstrate that their primary purpose is to make a profit, they may be able to deduct certain expenses as trade-or-business expenses under the Internal Revenue Code.
- A freelance graphic designer who creates logos and designs for clients is engaged in a trade or business.
- A small business owner who runs a bakery and sells baked goods to customers is engaged in a trade or business.
- A musician who performs at local venues and sells their music online is engaged in a trade or business.
These examples illustrate the definition of trade or business because each individual is engaging in an activity with the intention of earning a profit. They are conducting a business or professional activity that is not a hobby or personal pursuit, but rather a means of generating income. As a result, they may be able to deduct certain expenses related to their trade or business when filing their taxes.