In order to claim rental expenses, the expenditures should be current rather than capital. An expense that simply restores a property to its original condition is usually a current expense. For example, the cost of repairing wooden steps is a current expense. Conversely, the cost of a repair that improves a property beyond its original condition is probably a capital expense. You need to analyze whether the new hot water tank is better than the old one and is considered an improvement.
Please read this article to precisely assess your expenses
Current expenses or capital expenses as per the Canada Revenue Agency (CRA)
Related Information:
Rental Property Expenses as per TurboTax
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