Repairs at purchase for rental property, current or capital expense?

[lindsay1]

We bought a rental property that was less than 10 years old but needed some work before renting it out. We put in flooring, painted walls, fixed/replaced fixtures, curtains, carpets, smoke detectors, etc. Would this all be a current expense or would it be capital expense since it was done at purchase in order to get the property ready to be rented? 

[Delphision · Accepted solution]

It is all capital and is added to the cost of the building.  Keep a list of upgrades and capital expenditures with your tax returns so you can track the adjusted cost base from year to year.