False, The internal revenue code authorizes deductions for trade or business activities if the expenditure is ordinary and necessary is false. A necessary expense is an expense that is helpful or conducive to the business activity.
Expenses that are appropriate and beneficial are referred to as necessary expenses. For expenses to qualify as tax deductibles, they must also fall under the category of ordinary expenses. A necessary expenses that makes sense for the company is one that is necessary. Although many necessary expenses are written off on specific lines of the tax schedule, some costs might not fall under one category or another. A necessary expenses is considered necessary if it is beneficial and appropriate for your trade or business. An necessary expenses does not have to be necessary in order to be deemed necessary. Expenses that are "helpful and appropriate," but not essential, are not considered necessary.
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