Business Expense

Definition: an expense that is ordinary and necessary for carrying on a trade or business.

Ordinary and Necessary Expenses

A business expense is an expense that is ordinary and necessary. The Internal Revenue Service interprets this to mean, "An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary." (Publication 535)