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:

Performance Review

A formal assessment where an employee's work performance is evaluated, typically annually, to provide feedback and guide future professional development.

Computer Skills

The ability to operate and perform tasks on a computer or digital device efficiently.

Kohlberg

Theory of moral development stages proposed by psychologist Lawrence Kohlberg, emphasizing the progression of moral reasoning.

Right and Wrong

Fundamental ethical concepts that define what is morally acceptable and unacceptable behavior.