Under the general requirements of Code Sections 162 and 212 regarding trade/business and income-producing activities, to be deductible an expense must be

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Shelton

Business

10 November, 02:34

Under the general requirements of Code Sections 162 and 212 regarding trade/business and income-producing activities, to be deductible an expense must be

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Haleigh Marsh · Answer 1

Related to carrying on the activity

Explanation:

The general requirement of the code sections 162 and 212 about the expense allowing as a deduction against income of the business is that the expenses are only allowable if it is related to the same business income. This means that the trading expense would be set off against trading income and rental expense would be set off against rental income. Furthermore, the expenses (losses) would be only deductible for the future years if the business has not abandoned its operations which means the expenses are related to carrying activities.