The Ordinary and Necessary Expenses for Operating an Illegal Gambling

question 5

True/False

The ordinary and necessary expenses for operating an illegal gambling operation (excluding such items as fines, bribes, and other illegal payments) are deductible.

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Definitions:

Wage Expense

Wage expense is the total amount of wages and salaries paid to employees by a company during a specific period of time.

Personal Use

The use of a company's assets for the owner's or employees' personal benefits, which can affect the taxable income of the business if not properly accounted for.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to produce goods or services.

Business Transactions

Economic events that are recorded in the financial statements of an entity because they affect the financial position of the company, involving the transfer of value between two or more parties.