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:

Criminal Activity

Conduct that violates the law and is punishable by the state through fines, imprisonment, or other penalties.

Fourth Amendment

The Fourth Amendment to the United States Constitution guarantees protection against unreasonable searches and seizures by the government, requiring warrants to be judicially sanctioned and supported by probable cause.

Dormant Commerce Clause

A principle that restricts states from enacting legislation that discriminates against or excessively burdens interstate commerce.

Importation

The act of bringing goods or services into one country from another country in order to sell them.