Question

Which of the following terms describes business expenses that would be deductible by the taxpayer?

a) Personal expenses
b) Necessary and ordinary expenses
c) Non-business-related expenses
d) Capital expenses

Answer 1

The term that describes business expenses that would be deductible by the taxpayer is necessary and ordinary expenses.

Step-by-step explanation:

The term that describes business expenses that would be deductible by the taxpayer is Necessary and ordinary expenses. These are expenses that are considered to be both necessary and ordinary in the course of conducting a business. They are typically common and accepted expenses in a particular industry or trade. For example, if a photographer purchases new camera equipment for their photography business, the cost of the equipment would be considered a necessary and ordinary expense that can be deducted from their taxes.