CompTIA PDI+ Exam Prep

Category - Enrolled Agent

Which of the following costs incurred on rental property should be classified as a capital improvement?
  1. Replacing a 20-year-old roof
  2. Repainting all of the interior walls
  3. Refinishing the existing wood floors
  4. Replacing a broken window pane
Explanation
Answer: A - Replacing a 20-year-old roof.
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