[Verse 1]
When you're running a business, there's expenses to claim
But the IRS has rules for this deduction game
Section one-six-two says they must be ordinary
And necessary too, or you'll be sorry
Ordinary means common in your trade
Necessary means helpful for profit to be made
[Chorus]
Business expenses, ordinary and necessary
Current or capital, choose so carefully
Fifty percent for meals, entertainment's gone away
Home office needs exclusive use every single day
One-six-two is the key, learn it well today
Business expenses, the tax-saving way
[Verse 2]
Welch versus Helvering taught us what ordinary means
Not moral or usual in everyday scenes
But normal and customary in your business world
A payment that's typical where profits are unfurled
What competitors do in similar situations
That's the test for ordinary in tax regulations
[Chorus]
Business expenses, ordinary and necessary
Current or capital, choose so carefully
Fifty percent for meals, entertainment's gone away
Home office needs exclusive use every single day
One-six-two is the key, learn it well today
Business expenses, the tax-saving way
[Verse 3]
INDOPCO doctrine says look at future benefits
If it helps beyond this year, capitalize it
Tangible property regs make the rules more clear
Repairs deduct now, improvements over years
Current deduction or capital, timing matters most
Don't let wrong classification hurt your business boast
[Bridge]
Reasonable compensation when you're a corporate owner
Pay yourself too much and IRS will be a groaner
Salary versus dividends, find the balance right
Business meals at fifty percent since twenty-twenty-two's sight
Entertainment's disallowed since Tax Cuts and Jobs came through
Home office exclusive use, regular and true
[Chorus]
Business expenses, ordinary and necessary
Current or capital, choose so carefully
Fifty percent for meals, entertainment's gone away
Home office needs exclusive use every single day
One-six-two is the key, learn it well today
Business expenses, the tax-saving way
[Outro]
From Welch to INDOPCO, the lessons we have learned
Ordinary, necessary, how deductions are earned
Keep good records, follow rules, and you'll be on your way
To claiming business expenses the proper legal way