Is a Private Car Service an “Ordinary and Necessary” Expense?
In the past few years, with so many companies looking for ways to reduce business expenses, we’ve often heard the inquiry, “Why do we need a corporate car service?” It’s a valid question. In order to be tax-deductible, business transportation expenses much be both “ordinary and necessary.” According to the IRS, “An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business.” But this just touches on a larger question: whether a private car service provides value in line with its cost. Read More