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Disallowable expense in tax jargon usually means nondeductible. In other words, you may have a certain expense relating to doing business or producing income, but it is not allowed to be deducted from your income to figure out your tax liability.For example, you are an employee who commutes to work every day. It costs you 1000 dollars a year for parking in the local parking deck. Because parking expenses for your main job location are considered non-deductible, you cannot claim this 1000 dollars as an expense against your income. If you deducted this expense and your return was audited, in all likelihood this deduction would be disallowed.
I need to complete a tax return and need to know what a disallowable expense means?