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New Member
posted Oct 30, 2019 10:21:54 AM

I replaced the roof of my rental property and unsure if it is a current or capital expense. I have seen arguments for both.

I decided to replace the roof because it was really worn down. I would certainly say that it provides a lasting benefit (one of the criteria to capitalize), but it was replaced using the same material (shingles) so I wouldn't say it was an improvement (another criteria). Cost was just over $10K.

If I need to capitalize, where I do this in TurboTax?

0 1 3570
1 Replies
New Member
Oct 30, 2019 10:21:55 AM

Ultimately the taxpayer determines the tax treatment for maintenance expenses on a property. The CRA guideline refers to replacement of material with a greater quality would be Capital. An example would be to replace an asphalt roof with steel or tile. It would be normal that similar materials replacing an older version would be by their nature and advancement in technology of better quality but not the intended interpretation of the CRA guideline.