What is Foreclosure? Foreclosure is the legal right of a mortgage holder or other third-party lien holder to gain ownership of the property and/or the right to sell the property and use the proceeds to pay off the mortgage if the mortgage or lien is in default. It is a concept that has existed for centuries.
Business expenditures can be divided into capital and revenue expenditures. Capital expenditures are expenditures that produce benefits across multiple time periods, such as the costs to acquire and make ready for use long-term assets.
If you use the actual-expenses method, you can deduct direct expenses â such as painting or repairs solely in the home office â in full. Indirect expenses â mortgage interest, insurance, home utilities, real estate taxes, general home repairs â are deductible based on the percentage of your home used for business. Example: Letâs say you paid $3,000 in mortgage interest, $1,000 in insurance premiums and $3,000 in utilities (all indirect expenses) plus $500 on a home office paint job (direct expense) in the 2016 tax year.