Learning Center

Video Tips: Tax Implications of Lavish and Extravagant

The Internal Revenue Service (IRS) does not provide a strict definition of what is considered "lavish" or "extravagant" when it comes to business expenses. However, the Service does provide guidance that expenses must be "ordinary and necessary" for them to be deductible. An "ordinary" expense is one that is common and accepted in the taxpayer’s specific trade or business, while a "necessary" expense is one that is helpful and appropriate.

Share this article...

Want tax & business tips and insights?

Sign up for our newsletter.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

Get In Touch With Brontide

At Brontide, we're committed to delivering timely and reliable solutions for your tax and assurance needs. Fill out the form below to reach out to us.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .
I consent to receive SMS messages and agree with the

Social Media

Location

6701 Democracy Blvd, Suite 300
Bethesda, Maryland 20817

Maryland License Number: 41307