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April 10, 2022
Question

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?

  • April 10, 2022
  • 1 reply
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Is this a capital cost allowance, and what is the percentage the total expense that can be deducted each year?

    1 reply

    April 10, 2022

    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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