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What is the difference between Direct expenses and Indirect
expenses?
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Answer Posted / madhav mishra
Direct Expenses: Direct expenses are those expenses that are paid only for the business part of your home. For example, if you pay for painting or repairs only in the area used for business, this would be a direct expense.
Indirect Expenses: Indirect Expenses are those expenses that are paid for keeping up and running your entire home. Examples of indirect expenses generally include insurance, utilities, and general home repairs. Since these are expenses you would pay for the entire home, these are considered indirect expenses.
Note: If you paid one of these separately and specifically for the part of your home you are using for business, these could be considered "direct expenses". For example, if you paid separate utilities that were specifically for your home office, this could be considered a direct expense. If any part of that bill included utilities for the whole house, though, that would be an indirect expense.
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