Expenditures related to the duplex

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Reference no: EM13992048

Hamid owns and lives in a duplex. He rents the other unit to an unrelated mar- ried couple for $850 per month. During the current year, he incurs the following expenses related to the duplex:

Mortgage interest		$7,500
Property taxes		1,100
Utilities		1,450
Repairs
Paint exterior of duplex	$2,200
Fix plumbing in rental unit	320
Shampoo carpet in both units	290
Fix dishwasher in Hamid's unit	120	2,930
Homeowner's association fee		480
Insurance		800
Special property tax assessment to pave sidewalks		3,100
Depreciation (both units)		4,200

How should Hamid treat the expenditures related to the duplex? Explain.

Reference no: EM13992048

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