Question 11 The following is an example of a recurring expense which is deductible by a calendar-year taxpayer in full in the year of payment: Taxpayer purchases six months of business insurance on September 15,2016 , for a cost of $800. Taxpayer pays $10,000 for two years of rent for the office building in advance. Taxpayer pays a consultant $15,000 to perform a marketing study that will not be completed for 18 months. Taxpayer pays his attorney a retainer fee of $10,000 for ongoing litigation costs in a product liability lawsuit