What NECESSARY means: An expense that is appropriate and helpful in furthering the taxpayer's business or income-producing activity. See also Ordinary defined elsewhere in this glossary.
- Definition Negligence:
- Dictionary reasonable care and caution as would be expected of a prudent person. A penalty may be assessed if any part of an underpayment of tax is due to negligent or intentional disregard of rules and necessary definition.
- Definition Nontaxable Distributions:
- Dictionary applied to stock dividend distributions that are not taxable. These distributions generally take the form of return of capital, stock dividends, stock splits, and/or tax-free distributions necessary explain.
- Definition Nontaxable Earned Income:
- Dictionary Income a taxpayer receives for services that is excludable from gross income. Examples include military housing allowances, ministers' housing allowances, and excludable combat pay necessary what is.
- Definition Nonbusiness Bad Debts:
- Dictionary incurred in connection with a creditor's trade or business. A nonbusiness bad debt is deductible as a short-term capital loss and is allowed only in the year the debt becomes entirely worthless necessary meaning.
How works Necessary meaning in Tax definitions N .
