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:

Discuss the proper tax treatment for these expenditures.

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Item Amount Replace roof and roof underlying structure because of building $30,000 code requirements Repaint the interior 3,000 Repair door handles and door locks 1,000 Replace three broken windowpanes 1,500 Replace crumbling sidewalks and stairs because of building code requirements 25,000