The following is an example of a recurring expense which is deductible by a calendar-year taxpayer in full in the year of payment:

(a.) The taxpayer purchases six months of business insurance on September 15, 2016 for a cost of $800.

(b.) The taxpayer pays $10,000 for two years of rent for the office building in advance.

(c.) Taxpayer pays a consultant $15,000 to perform a marketing study that will not be completed for 18 months.

(d.) Taxpayer pays his attorney a retainer fee of $10,000 for ongoing litigation costs in a product liability lawsuit