Glossary · IRC §162 · 26 U.S.C. §162

Business Deductions

From THE TAX CUTTERY® Guide. Principal treatment in Chapter 3: Deductions — Reducing the Tax Base.

Business Deductions Under Section 162 — The foundational business-expense statute requires expenses to be ordinary, necessary, paid or incurred, and in carrying on a trade or business Ordinary and necessary expense — The Section 162 standard requiring that a business expense be common and accepted in the trade or business and appropriate and helpful to it

In the Guide

This section is treated in Chapter 3, Chapter 1, Chapter 7, Chapter 10, Chapter 12, Chapter 18, Chapter 21. The published chapter summary is the source of the definition above. The full reasoning, citations, and worked examples are in the book.

Related in this chapter

• IRC §62 — Above-the-Line Deductions
• IRC §179 — Section 179 and Bonus Depreciation