An expense is a cost associated with engaging in an income-producing activity. In some instances, expenses (or costs) are currently deductible for tax purposes. In other instances, expenses (or costs) must be capitalized into the tax basis of the property and treated as a reduction in taxable income (or otherwise recovered) when an asset is disposed of.
Please be advised you should consult a tax professional to determine your individual situation as it relates to 'expenses".
NOTE: Lukka does not provide tax advice. The statements above are general in nature and do not address how the application of the tax rules can vary based on a taxpayer’s actual facts. Please consult a tax professional on how the tax rules apply to your specific facts.