Repairs refer to work performed to return a property to its former condition without extending its useful life, distinguishing them from capital improvements. In the context of income property, repairs are an operating expense for accounting and tax purposes.
Servicing generally refers to the regular maintenance and routine repairs to equipment. In finance, servicing encompasses the act of billing, collecting payments, and filing reports on a loan. This process is crucial for maintaining the operational and financial stability of both physical assets and financial instruments.
