Trade Expense (Noun)
Meaning
Ordinary and necessary expenses incurred in a taxpayer's business or trade.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's accountant carefully categorized the travel costs as a trade expense to ensure they were eligible for a tax deduction.
- As a freelance writer, she claimed her home office expenses as a trade expense on her tax return.
- The small business owner kept detailed records of all trade expenses, including supplies and equipment purchases.
- The tax court ruled that the business owner's meal expenses were legitimate trade expenses and allowed the deduction.
- The company's trade expenses, including salaries and rent, were significantly higher than the previous year due to expansion.