Capital Cost Allowance for a Rental

[lexisexy]

My rental property underwent renovations where I had purchased 10k in furniture. This falls under class 8. In form T776 I would file this under class 8.

Reading up on CCA however there is also this distinction of claiming CCA class 1 for the entire rental property value -- I dont want to depreciate my rental property via CCA to reduce my rental net income - the disadvantages associated with doing this dont appeal to me. 

I want to capture just the renovation expenses but am worried if I do the Class 8 filing, I would also in turn depreciating the rental property. Are they the same thing? Is there another way to do this?

[TurboTaxBrenda]

Yes, you can claim the renovation costs without including the building. 

Capital expense

Capital expenditures provide a benefit that usually lasts for several years. For example, costs to buy or improve your property are capital expenses. Generally, you cannot deduct the full amount of these expenses in the year you incur them. Instead, you can deduct their cost over a period of several years as capital cost allowance.

These expenses can include:

• the purchase price of rental property
• legal fees and other costs connected with buying the property
• the cost of furniture and equipment you are renting with the property

TurboTax article: Dos and Don’ts: CCA for Rental Property Explained & The Landlord’s Toolbox: A Guide to Claiming Expenses on Rental Properties

Class 8 (20%)

Class 8 with a CCA rate of 20% includes certain property that is not included in another class. Examples are furniture, appliances, and tools costing $500 or more per tool, some fixtures, machinery, outdoor advertising signs, refrigeration equipment, and other equipment you use in the business.

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