Question

Question 18 of 30. Candace owns a duplex. She resides in one unit and rents out the other. Her expenses need to be categorized as indirect (partly deductible) or direct (fully deductible). Choose the response that provides the best example of a direct expense. O A new roof for the duplex, installed after the tenant complained about a leak in their ceiling. O Replacement sidewalk leading up to the building. A new window air conditioner installed in the tenant's unit O Landscaping

Answer 1

The best example of a direct expense: "A new roof for the duplex, installed after the tenant complained about a leak in their ceiling"

=> This is because the expense on the new roof for the duplex makes the premises livable and roof is the part of the construction structure of the residing premises. So, it is treated as the Direct expense.