Rosa owns a duplex and rents both units to tenants. Which one of the following expenditures is not a deduction for tax purposes?
A)Cost of a new refrigerator.
B)Cost of repairing the front stairs.
C)Cost of painting the interior of unit #2.
D)Interest paid on the mortgage on the duplex.

Question

Quizplus · Accepted Answer

The cost of a new refrigerator is considered a capital expense and is not deductible as a current expense. It can only be depreciated over a number of years. The cost of repairing stairs and painting the interior are considered ordinary and necessary expenses of maintaining and operating a rental property and are deductible as current expenses. Interest paid on the mortgage is also deductible as a current expense.

Rosa Owns a Duplex and Rents Both Units to Tenants