Mandy is a self-employed plumber. She spends $24,000 of her personal savings to buy an Airstream camper to use on camping trips. Why is this expenditure not currently deductible?
I.It is a capital expenditure.
II.It is a personal expenditure.

Question

Mandy is a self-employed plumber. She spends $24,000 of her personal savings to buy an Airstream camper to use on camping trips. Why is this expenditure not currently deductible?
I.It is a capital expenditure.
II.It is a personal expenditure.
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Quizplus · Accepted Answer

The expenditure is not currently deductible because it is a personal expenditure, which is generally not deductible for tax purposes. It is not a capital expenditure since it is not considered a long-term investment in a business asset.

Mandy Is a Self-Employed Plumber