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ordinary and necessary

Defined in 1 dictionary — Case Law

Definitions from Case Law

From 325 U.S. 365 - Bingham's Trust v. Commissioner of Internal Revenue · 1945Most cited · 961 citing opinions

The requirement of § 23(a)(2) that deductible expenses be 'ordinary and necessary' implies that they must be reasonable in amount and must bear a reasonable and proximate relation to the management of property held for the production of income.