I replaced the old aluminum slider windows in my rental property with new triple pane low E windows. Should I claim this as depreciable improvement?

[f-robin]

Is this a capital cost allowance, and what is the percentage the total expense that can be deducted each year?

[Tom_Cheng]

For the windows in rental property, it depends. If the new windows are similar in quality to the windows that were there previously, then you can claim them as a current expense.

However, if the new windows are significantly better than the old ones they may be considered a capital expense. In that case, you’d add the expense to the capital cost of your building.

(The windows would be added to the cost of the Building. CCA rate Class 1 - 4%). 

So if you are not taking capital cost allowance(CCA), then you’ll add this to the Adjusted Cost Base when you sell/dispose of the property.

For more information, please click

TurboTax Dos and Don’ts: CCA for Rental Property Explained

Canada Revenue Agency(CRA) Current expenses or capital expenses

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