Salaries Are Considered an Ordinary and Necessary Expense of a Trade

question 2

Essay

Salaries are considered an ordinary and necessary expense of a trade or business if they meet what other requirement? What are the tax consequences if this requirement is not met?

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Definitions:

Wetlands

Areas of land where saturation with water is the dominant factor determining the nature of soil development and the types of plant and animal communities living in the soil and on its surface.

Gene Banks

Facilities that preserve genetic material of plants or animals in order to protect biodiversity and support future breeding efforts.

Sanctuaries

Protected areas where wildlife, historic landmarks, or cultural artifacts are preserved and protected from human interference.

Wild Species

Plant and animal species that exist naturally in the wild, untouched by domestication or genetic modification.