what is the tax treatment for operating expenses 
the internal revenue service irs allows businesses to deduct operating expenses if the business operates to earn profits according to the irs operating expenses must be ordinary common and accepted in the business trade and necessary helpful and appropriate in the business trade in general businesses are allowed to write off operating expenses for the year in which the expenses were incurred 1the bottom lineoperating expenses are the expenses that arise from daily core operational activities conducted by a company they are the costs involved in running a business to generate income operating expenses can be fixed or variable typically they re tax deductible as long as a company operates to earn a profit expenses are commonly known and necessary 