Various criteria will disqualify the deduction of a business or investment related expenditure.Which of the following criteria will not disqualify a business or investment expenditure?
A)capital expenditure
B)expenses related to tax-exempt income
C)expenses are not incurred annually
D)expenses are illegal or in violation of public policy

Question

Quizplus · Accepted Answer

C)The Code specifically disallows the current deduction of capital expenditures,expenses related to tax-exempt income,and expenses that are illegal or in violation of public policy.Expenses are not required to be incurred annually.

Various Criteria Will Disqualify the Deduction of a Business or Investment