The phrase "ordinary and necessary" means that an expense must be appropriate in and helpful for generating a profit.

Name: The phrase "ordinary and necessary" means that an expense must be appropriate in and helpful for generating a profit.
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The phrase "ordinary and necessary" is used by the IRS to determine if a business expense can be tax-deductible. Such expenses must be considered appropriate in and helpful for generating a profit.

The Phrase "Ordinary and Necessary" Means That an Expense Must