Expense Legal Meaning and Definition

Here is a simplified definition of the legal term Expense.

Expense (noun)

An expense is the money that a person or business spends on things in their daily operation. This could include rent, salaries, utilities, or other costs related to keeping a business running. It's different from 'capital expenditures,' which are spent on long-term investments like property or equipment. In business accounting and taxation, 'expenses' are crucial for determining net income and taxable income.