Ordinary and Necessary Business Expenses, Other Than Cost of Goods

question 6

True/False

Ordinary and necessary business expenses, other than cost of goods sold, of an illegal drug-trafficking business do not reduce taxable income.

---

Definitions:

Permissive

A parental approach where there's minimal expectations combined with a high level of attentiveness.

Authoritative

Refers to an assertive and confident command of knowledge or the exercising of control, often associated with leaders or experts in a particular field.

Psychoanalysis

A therapeutic approach developed by Sigmund Freud that seeks to explore the unconscious mind's roles in shaping behaviors.

Behaviorism

A theory of human development that studies observable actions. Behaviorism is also called learning theory, because it describes how people learn to do what they do.