trade expense
Học thuậtThân thiện
Definition
Noun: - An ordinary and necessary cost incurred in the operation of a business or trade: A "trade expense" is a cost that is common, accepted, helpful, and appropriate for a specific trade, business, or profession. These expenses are typically deductible for tax purposes.
Usage
- This term is used primarily in financial, accounting, and tax contexts to categorize costs that are essential for running a business.
- It is a formal, compound noun. The phrase functions as a single unit.
Examples
Advanced Usage
- The concept is central to tax law. For an expense to qualify, it must be both "ordinary" (common and accepted in the specific trade) and "necessary" (helpful and appropriate for the business operation).
- Capital expenses (costs for assets that provide long-term benefit, like machinery) are typically not considered current trade expenses; they are usually depreciated over time.
Variants and Related Words
- Business expense: A very close synonym, often used interchangeably in general contexts.
- Operating expense (OpEx): A broader accounting term for the ongoing costs of running a business, which includes trade expenses.
- Deductible expense: An expense that can be subtracted from gross income to reduce taxable income.
Synonyms
- Business expenditure
- Operating cost
- Commercial expense
Antonyms
- Capital expenditure (CapEx)
- Personal expense
- Non-deductible expense
Related Phrases
- To incur a trade expense: To become liable or subject to a business cost.
- The firm incurred significant trade expenses while setting up the new office.
- To deduct a trade expense: To subtract an expense from gross income on a tax return.
- You can deduct these trade expenses on Schedule C of your tax return.
Noun
- ordinary and necessary expenses incurred in a taxpayer's business or trade