Well, there are basically 2 types of expenses that you can deduct related to your hotel/restaurant: One is Direct Expenses and the other is Indirect Expenses.
“Direct” the word itself suggest that these expenses are completely related & assigned to the core hotel business operations. Mainly, the direct expenses are related to the purchases and production of goods/services.
When it comes to "Indirect Expenses", these expenses are paid for keeping up and running your entire hotel/restaurant.
For instance, the indirect expenses generally include insurance, utilities, and general hotel repairs. Since these are expenses you would pay for the entire hotel, these are considered indirect expenses
as per the question you have raised I’ve listed down the expenses categories in the concerned sections.
Direct: Rent paid for building, salary of housekeeping staff front office staff restaurant staff like cook chef, waiter, caption etc.
Indirect: Electric bill of hotel, telephone bills, cable connection bill for guest rooms
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