<p>Sec. 162 Trade or business expenses</p>

Sec. 162 Trade or business expenses

<p>26 U.S.C. section 162, Trade or business expenses. IRC section 162 provides a deduction for ordinary and necessary expenses incurred while engaging in a trade or business. It provides special rules for charitable contributions, bribes and other illegal payments, lobbying, fines and penalties, foreign advertising, stock reacquisition expenses, and health insurance. It also provides a deduction limitation for excessive executive compensation for certain covered employees at publicly held companies. The Tax Cuts and Jobs Act eliminated the performance-based exception to the deduction and expanded the definition of a publicly held corporation and a covered employee. The TCJA also created a limitation on deducting payments made in connection with sexual harassment claims.</p>

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Sec. 162 Trade or business expenses