Which expense may NOT be deducted from a landlord's taxes?

The option regarding lobby renovation reflects an expense that may not be fully deductible in the same manner as other operational costs. In real estate, certain costs incurred for improvements or renovations that enhance the value of a property or extend its useful life are considered capital expenditures. These expenses are typically not deductible in the year they are incurred; instead, they must be capitalized and depreciated over time.

In contrast, management fees, ceiling repairs, and property taxes are typically considered ordinary and necessary expenses associated with the operation and maintenance of rental properties. These types of expenses can generally be deducted in the year they occur since they do not add substantial value to the property but instead keep it functional and operational.

Therefore, the lobby renovation represents an investment in property improvement rather than an immediate operational expense, making it the correct choice as an expense that may not be deducted in the same way as the other options.