Which of the following is not a test to deduct business expenses:
A)The expense must be ordinary and necessary
B)The expense must have a legitimate business purpose
C)The expense must be reasonable
D)The expense must be lavish and extravagant

Question

Quizplus · Accepted Answer

The expense must be "ordinary and necessary," must have a "legitimate business purpose," and must be "reasonable." However, it must not be "lavish and extravagant," which means that it cannot be extravagant or extravagant in extent or amount.

Which of the Following Is Not a Test to Deduct