The internal revenue code contains three general categories of currently deductible expenses including the following: a. expenses incurred in a trade or business, expenses incumed 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 incumed 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.