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Investments glossary

Ordinary and Necessary Expense (O & NE)


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Quotes of the day:

Business strategies can interestingly be assimilated with medicinal drugs. There are no better or worse strategies. There are only adequately adopted business strategies or inappropriately selected and implemented strategies.

— Abderrahman Hassi

Ordinary and necessary expenses are expenses incurred by individuals as the cost of owning a business or carrying on a trade. Ordinary and necessary expenses are categorized as such for income tax purposes, and these expenses are generally considered tax deductible in the year they are incurred.


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