Question

Capitalization vs. Expense. Sam owns a small apartment building (this is the only rental building Sam owns). During the year Sam incurs the following expenditures:

Pope, Thomas R.; Rupert, Timothy J.; Anderson, Kenneth E.. Pearson's Federal Taxation 2017 Comprehensive (Page 6-Ind 40). Pearson

Replace roof and roof underlying structure because of building code requirements $30,000

Repaint the interior 3,000

Repair door handles and door locks 1,000

Replace broken windows 1,500

Replace crumbling sidewalks and stairs because of building code requirements 25,000

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