Which item qualifies as a major improvement expense?

Which item qualifies as a major improvement expense?

• A. Gazebo addition
• B. Roof replacement due to wear and tear
• C. Routine janitorial supplies
• D. Replacement funding for sidewalks

Answer: (A)

Major improvements are capital expenditures that add value to the property or extend its useful life beyond normal maintenance. Adding a gazebo creates a new feature, increases usable space, and enhances overall property value, so it qualifies as a major improvement expense. Replacing a roof due to wear and tear is a standard repair that restores the original condition, not an enhancement. Routine janitorial supplies are ongoing operating costs, not capital improvements. Replacing sidewalks due to wear is typically a maintenance/ replacement activity rather than a new improvement. Therefore, the gazebo addition is the major improvement expense.

Major improvements are capital expenditures that add value to the property or extend its useful life beyond normal maintenance. Adding a gazebo creates a new feature, increases usable space, and enhances overall property value, so it qualifies as a major improvement expense. Replacing a roof due to wear and tear is a standard repair that restores the original condition, not an enhancement. Routine janitorial supplies are ongoing operating costs, not capital improvements. Replacing sidewalks due to wear is typically a maintenance/ replacement activity rather than a new improvement. Therefore, the gazebo addition is the major improvement expense.