Section 11 Deductions

• Library: Tax Law 2009

Like the definition of gross income in § 148.040.1, RSMo 2000, the definition of deductions is broad with references to various items that are to be specifically included. “[T]here shall be allowed as deductions all ordinary and necessary expenses paid or incurred by the taxpayer during the income period in carrying on its trade or business.” Section 148.040.3. Many of these enumerated items reflect the same limitations contained in the Code. For example, § 148.040.3 refers to “reasonable” compensation and limits contributions to...