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You Don’t Get to Define ‘Ordinary & Necessary.’ The IRS does. And if you get audited? So does the court. Let’s unpack this 👇 Section 162(a) of the tax code allows you to deduct: ➡️ Ordinary expenses. ➡️ Necessary expenses. …as long as they’re tied to your business. But here’s where too many business owners (and social media tax “experts”) miss the mark: You don’t get to decide what’s ordinary. You don’t get to decide what’s necessary. And you absolutely don’t get to decide what’s reasonable. That’s defined by: ⚖️ The IRS. ⚖️ The Tax Court. 📚 Decades of precedent. Let me simplify it: ✅ Ordinary = Common in your industry. ✅ Necessary = Helpful for generating revenue. ✅ Reasonable = Defensible under audit. Here’s a real-world example: You run a bakery. Buying an oven? ✅ Ordinary. ✅ Necessary. But what if you already own 12 ovens… …and you buy a 13th — with nowhere to install it? 🚫 That’s not reasonable. And that deduction like...
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