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:

Uncover

The process of discovering or revealing information, needs, or opportunities that were previously unknown or hidden.

Needs

The desire for something a person feels is worthwhile.

Referral Approach

A sales technique where existing customers are encouraged to refer new clients, leveraging existing relationships to gain new business.

Introductory Approach

The initial step in a sales process where the salesperson introduces themselves and their offering to a prospective client.