The phase "ordinary and necessary" has been defined to mean that an expense must be essential and indispensable to the conduct of a business.
A necessary expense is an expense that is helpful or conducive to the business activity.

Question

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The phrase "ordinary and necessary" in tax law means that an expense must be common, accepted, helpful, and appropriate for the business, but not necessarily essential or indispensable.

The Phase "Ordinary and Necessary" Has Been Defined to Mean