What is a direct or indirect expense as defined by the IRS?

Question by rich_beasley: What is a direct or indirect expense as defined by the IRS?
I’m sitting here working on my taxes and the IRS wants me to define direct and indirect expenses as related to mortgage interest and my home based business. The problem is that I can’t find the definitions anywhere.
This is found on Form 8829 “Expenses for Business Use of Your Home” line 10 “Deductible mortgage interest”.

Thanks in advance!

Best answer:

Answer by Rajmal O
The expense which impart the cost of the product is called Direct Expense while the expense occured to carry out the business activity is called Indirect Expense.

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