You are here

Basic Federal Income Taxation: Deductions: Trade or Business Deductions

This lesson will guide users through the types of expenses that can be deducted as business or trade costs, including cost of repairs versus capital expenditures.

Learning Outcomes
On completion of the lesson, the student will be able to:
1. Give examples of "ordinary and necessary" business expenses.
2. Provide examples of costs that are capitalized expenditures rather than deductible business expenses, including repairs.
3. Explain when job-seeking costs are deductible under § 162.
4. Explain the difference in treatment under § 162 between expanding an existing business and entering into a new business.

Lesson Completion Time

15 minutes
Access Denied
Access to CALI Lessons is restricted to people affiliated with CALI member organizations and those who have purchased individual memberships. You may register or login to run CALI Lessons.

CALI Topics

Lesson Authors

Lesson ID

TAX112