Hi, the washing machine at our rental property broke down. I called a service technician who charged $100 to diagnose the issue. After recieving the estimate to have it repaired, we decided to buy a new one instead. How do we claim these expenses? Do we we add up the cost of diagnosing the problem and the purchase price of the new machine and enter it as CCA? Or can we take the diagnosis portion and claim it as part of our repair/maintainance expenses and enter the new machine as CCA?
The distinction can be difficult to tell as a number of factors are taken into consideration by CRA. I have provided the link from CRA on the matter below:
If you still cannot determine after reading CRA guidelines in the link above, if you should expense or capitalized you can take into consideration the value the item/service brought to the property if none then most likely it is an expense.