Akademik

ex·pense ¹ n: financial burden or outlay; specif: an item of business outlay chargeable against revenue for a specific period

busi·ness expense: an expense made in furtherance of one's business esp. as part of the cost of operating a business in the taxable year in which the expense is incurred compare capital expense and personal expense in this entry

◇ Business expenses are generally tax deductible in the year the expense is incurred.

capital expense: an expense made in a business that will provide a long-term benefit: capital expenditure

◇ Capital expenses are not tax deductible as business expenses but may be used for depreciation or amortization.

mov·ing expense: an expense incurred in changing one's residence that is tax deductible if incurred for business reasons (as when one's job requires relocation)

or·di·nary and nec·es·sary expense: an expense that is normal or customary and helpful and appropriate for the operation of a particular business or trade and that is made during the taxable year – called also ordinary and necessary business expense;

◇ Ordinary and necessary expenses are tax deductible.

per·son·al expense: an expense incurred in the course of one's personal affairs as distinguished from the course of one's employment or the operation of a business compare business expense in this entry

◇ Personal expenses are usu. not tax deductible.