List the Criteria Necessary for an Expenditure to Be Deductible

question 5

Essay

List the criteria necessary for an expenditure to be deductible as a trade or business expense or an expense for the production of income.

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Definitions:

Owner Control

The level of power and authority held by the owner(s) of a business in making significant decisions about its operations.

Lessee

A person or entity that rents or leases property from another, known as the lessor, under the terms of a lease agreement.

Lessor

The party that leases or rents out a property or asset to another party, known as the lessee.

Contractual Agreement

A legally binding contract between two or more parties outlining terms and conditions of an agreement.