For a taxpayer who is engaged in a trade or business, the cost of investigating a business in the same field is deductible only if the taxpayer acquires the business.

Question

Quizplus · Accepted Answer

The cost of investigating a business in the same field is generally deductible regardless of whether the taxpayer acquires the business, as these are considered ordinary and necessary expenses related to the taxpayer's trade or business.

For a Taxpayer Who Is Engaged in a Trade or Business