Series 22: 2.3.1. Tax Deductible Expenses

2.3.1.  Tax Deductible Expenses

Operating expenses are generally tax deductible. To qualify, however, an operating expense must be:

• ordinary and necessary for the conduct of the business

• a current expense directly related to the business

• reasonable in amount

A current expense means one that is not paid in advance of the tax year to which it applies. If