Legal Expenses Are Generally Deductible If They Have a Business

question 81

True/False

Legal expenses are generally deductible if they have a business purpose; they are generally not deductible if they originate from a personal transaction.

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Definitions:

Internalization

The process by which individuals incorporate external standards, values, and norms into their own belief system, making those external influences a part of their internal psyche.

Core Knowledge Approach

A theory in cognitive development suggesting that infants have innate, domain-specific knowledge systems that enable early understanding of key aspects of the world.

Domain-Specific

Relates to knowledge, skills, or abilities that apply to a particular domain or area of activity exclusively.

Innate Knowledge

Knowledge that is presumed to be inborn or natural, existing in the mind independent of experience.