Which of the following is a required test for the deduction of a business expense?
A)Ordinary
B)Necessary
C)Reasonable
D)All of the above
E)None of these

Question

Quizplus · Accepted Answer

All three factors (ordinary, necessary, reasonable) must be met for a business expense to be deductible. "Ordinary" refers to expenses that are common and accepted in the particular industry or trade. "Necessary" refers to expenses that are helpful and appropriate for the business. "Reasonable" refers to expenses that are not excessive or lavish considering the nature of the business and the circumstances in which the expenses were incurred.

Which of the Following Is a Required Test for the Deduction