Assertion: expense | /r/HasProperty | necessary
Facets:
value: in nature
type: LOCATION
value: to a company’s success
type: TRANSITIVE-OBJECT
value: in order to earn revenues
type: PURPOSE
value: to the operation of the business
type: TRANSITIVE-OBJECT
Source sentences:
text: As long as the expenses are necessary to the operation of the business and are ordinary to the type of business in that industry, a business owner can deduct them and reduce the overall tax liability.
text: An expense does not have to be indispensable to be considered necessary.
text: There are also living expenses that may be considered non-essential, which may contribute to a person’s cost of living but that could be done without and still allow a person to survive, though with a different lifestyle.
text: These expenses are vital to a company’s success as they are incurred to increase efficiency or comply with laws and regulations.
text: In other words, if management sets a goal of increasing sales by 10 percent, the marketing department must estimate the amount of selling expenses that will be needed to increase sales to meet the goals.
text: That means these expenses are required and cannot be avoided because they help the business continue running.
text: The court will determine if an expense is essential.
text: These expenses are essential expenses, as the income earner does not have the option of not paying them in any given month without incurring consequences.
text: The necessary expense test is defined as expenses that are necessary to provide for a taxpayer’s (and his or her family's) health and welfare and/or production of income.
text: Expenses must be ordinary and necessary.
text: An expense is a cost that has expired or was necessary in order to earn revenues.
text: In general, if an expense is ordinary and necessary for you to conduct business, it can be written off as a business expense.
text: An expense doesn’t have to be indispensable to be necessary; it need only help your business in some way, even in a minor way.
text: So, even if the expenses are ordinary and necessary, if the employer does not have an accountable plan, then any reimbursements are taxable income.
text: These expenses must be reasonable and necessary.
text: Steps 3 and 4 explain when an expense is reasonable or necessary.
text: Once an expense is found to fit within the prescribed list, a court will seek to understand whether the expense is necessary and reasonable.
text: The expense must be considered necessary, must be incurred by the policyholder, must be for the purpose of continuing a normal standard of living, and must be caused by the insurable event occurring.
text: An expense does not have to be indispensable to be considered necessary.
text: Most expenses beyond these two essential requirements could be considered non-essential in nature, though they will often contribute to a person’s realistic living expenses.