The Internal Revenue Code contains three general categories of currently deductible expenses including the following:

(a.) Expenses incurred in a trade or business, expenses incurred for the production of income, and expenses incurred for personal living.

(b.) Capital expenditures, expenses incurred in a trade or business and expenses incurred for the production of income.

(c.) Expenses incurred in a trade or business, expenses incurred for the production of income, and Code authorized personal expenditures.

(d.) Expenses incurred in a trade or business, expenses incurred for the production of income, and expenses incurred for the production of tax-exempt income