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==Brief Introduction: Deduction for Business Expenses== Section 162(a) of the Internal Revenue Code allows for taxpayers to deduct ordinary and necessary expenses paid or incurred in carrying on a trade or business from their gross income.〔26 U.S.C. 162(a)〕 Taxpayers seeking to minimize the size of their gross income for tax purposes have a strong incentive to deduct as much as possible from their pre-tax income. Thus, taxpayers will attempt to classify their activity as trade or business to take advantage of the deduction. To deduct an expense under § 162(a) the item must meet six separate elements:〔Samuel A. Donaldson, Federal Income Taxation of Individuals 202 (2005)〕 # The expense must be ordinary # The expense must be necessary # It must be an expense as opposed to a capital expenditure # The expense has to be paid or incurred during the taxable year # The expense has to be in carrying on the activity # The activity has to be a trade or business activity the part for When these criteria are met, the taxpayer will typically be successful in claiming a deduction. However, taxpayers may still face challenges to their claimed deductions if allowing a deduction is considered by the IRS or tax courts as invalid as against public policy. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Public Policy Limitation on Deduction for Business Expenses」の詳細全文を読む スポンサード リンク
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