How will I know if an item is deductible?

To be deductible, a business expense should comply with the following two requirements; it should be ordinary and necessary. An ordinary expense is common and acceptable in that field of business, area of commerce or profession. A necessary expense is useful and appropriate for the business, area of commerce or that profession. If the taxpayer is a business owner and operates more than one area of business, he or she may not combine the activities.

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Category: Expenses / Deductions, Self-employment