. Which of the following statements is incorrect?


. Production-of-income expenses, referred to as investment expenses, apply only to individual taxpayers.


 In general, for a mixed-use asset, the business (personal) portion of expenses are deductible (nondeductible).  


. To be qualified as deduction, a business expense must be ordinary, necessary, and reasonable in amount.


 If a taxpayer is not actively participating in a rental activity, rental expenses are classified as deduction from AGI.


 Repair-and-maintenance expenses are deductible in the current year whereas capital expenditure is capitalized (i.e., added to the basis of the asset) and depreciated over years.