Accounting Troubleshooters (Canada) Forum

Full Version: Capital improvements on a rental house
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I am looking at accounting advice for Canada. I own a rental house of which I brought last year, and I might move into in 2 years’ time. I do not know how much Capital Improvements I should put into this property. As if I do a $10,000 capital improvement, how much tax loss will I get per year from this now? How is this capital improvement treated if I move into the house in two to three years? Or any thoughts you might have. Thanks beforehand
Capital improvements is an asset, and it is added to the cost of the building.
A rental building can claim capital cost allowance likely Class 1 at a rate of 4% per year.

In contrast, any repairs to the building can be classified as 100% expense.

Capital improvements are added to the adjusted cost base of the building, which will be used to determine the capital gains/loss when you sell the property.
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