Taxpayers Are Allowed to Deduct All Ordinary and Necessary Expenses

question 53

True/False

Taxpayers are allowed to deduct all ordinary and necessary expenses incurred in connection with determining their tax obligations imposed by federal, state, municipal, or foreign authorities.

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Definitions:

Statutory Law

Written laws enacted by a legislative body that govern how individuals and organizations may conduct themselves.

Prohibited

Prohibited means officially forbidden or disallowed by law, rule, or other authority.

Void

A term describing a contract or legal agreement that is null, having no legal force or effect from the beginning.

Minor

A person under the age of legal majority, typically 18 years in most jurisdictions, who has certain restrictions on their legal capacities and responsibilities.