Unlike current expenditures, capital expenditures may not be deducted in full for the year in which they were incurred. However, you may deduct capital expenditures over a number of years by claiming capital cost allowance (CCA) annually.

To determine your allowable CCA, complete form TP-128-V, Income and Expenses Respecting the Rental of Immovable Property.

For more information, refer to document IN-100-V, Individuals and Rental Income.