Recent Tax Lessons About When A Business 'Starts'

By Bryan Camp (July 15, 2019, 3:49 PM EDT) -- It takes money to make money. Generally Congress allows taxpayers to deduct the money it takes from the money they make. That's the idea in Internal Revenue Code Section 162.[1] But Section 162's deceptively simple language — allowing a deduction for all "the ordinary and necessary expenses paid or incurred in carrying on a trade or business" — has gaps, to be filled by other statutes. For example, Sections 183[2] and 212[3] apply the Section 162 idea to activities that are not a "trade or business" but still produce income and have associated costs.

And then there is that pesky timing...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!