Investors and rental owners

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 You can claim a new dishwasher as a capital asset and you can add installation expenses to the cost of the dishwasher. Because capital expenditure can include the purchase cost of an asset as well as legal costs, transportation costs, and installation costs relating to the asset. As per CRA, the cost of replacing a separate asset within a property is a capital expense. CRA gives the example of the cost of buying a refrigerator to use in rental operation as a capital expense. It mentions that this is the case because a refrigerator is a separate asset and is not a part of the building.

 

As per CRA,  a current expense is one that generally reoccurs after a short period. For example, the cost of painting the exterior of a wooden property is a current expense. A capital expense generally gives a lasting benefit or advantage. For example, the cost of putting vinyl siding on the exterior walls of a wooden property is a capital expense.

 

You can visit the website of Rental Property Expenses: Current or Capital? to learn more about expenses related to your rental property.