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Necessary Expense

Necessary refers to a "necessary expense" as defined in IRS Publication 463.  Necessary is one of the four tax deduction tests that must be passed in order for an employee business expense or travel expense to be tax deductible.  IRS Publication 463 defines a necessary expense as one that is:

...helpful and appropriate for your business. An expense does not have to be required to be considered necessary.

For truck driver tax returns and trucker tax preparation purposes, an expense is considered necessary if it is considered helpful and appropriate for truck driver employment tasks.  Furthermore, the trucking employer does NOT have to require the expense for it to be a legitimate trucking-related employee business expense.  For example, assume a truck driver purchases a calculator and keeps it for performing trucking-related tasks.  The trucking employer may not require that truckers carry a calculator, but the calculator could easily be determined to be necessary based on the above definition of a necessary expense.

See also, ordinary expense and personal expense.


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