Do I file renovations (ie. paint, carpet replacement, etc) for a property purchased for rental as current or capital expense?
Property was purchased in Oct 2017, renovations completed in Dec 2017, and first tenants moved in Mar 2018. All renovations were replacing/repairing damaged or worn items in the home (ie. paint, carpet, countertops, fridge, dishwasher, etc) with no upgrades to the property. Rental income did not commence until Mar 2018. Are these expenses claimable, and if so, would they be capital or current expenses?
Do I file renovations (ie. paint, carpet replacement, etc) for a property purchased for rental as current or capital expense?
All expenses incurred to bring property to rentable condition prior to putting property on the market are capital expenses, meaning you add it to cost of the property ( ACB).
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