Question:

How to report current and capital expenses and what is the difference?

by Guest805  |  6 years, 7 month(s) ago

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How to report current and capital expenses and what is the difference?

 Tags: Capital, current, difference, expenses, report

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  1. Guest806

     Generally, any reasonable expenses incurred to earn rental income can be deducted. The expenses are separated in two groups – capital and current expenses.

    The capital expenses are added to the basis of your property and are subject to depreciation.

    The current expenses are deducted on your income tax return for the year actually paid.

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