42.23.401    BUSINESS EXPENSES

(1) To be deductible as an "ordinary and necessary expense" within the meaning of 15-31-114 , MCA, a payment must have a direct relation to the business of the corporation and it must be shown that it is necessary to the taxpayer's business, that it is ordinary with reference to the relation of the expense to the business, and that it is made with the expectation of a financial return or its equivalent commensurate with the amount of payment.

History: Sec. 15-31-501, MCA; IMP, Sec. 15-31-114, MCA; Eff. 12/31/72; AMD, 2001 MAR p. 2046, Eff. 10/12/01.