Parent – Court of Quebec finds that building repair work that matched the cost of the whole building was currently deductible
The taxpayer acquired a rental property in run-down condition for $275,000 and then incurred $290,074 in expenditures in order to restore the building. Subject to a concession at trial that $34,900 of this amount (spent on constructing a new exterior stairwell) was a capital expenditure, Vaillant JCQ found these to be currently deductible expenses, stating:
[T]he work carried out on the building consisted of correcting defects or deficiencies in the building created over time by a lack of maintenance. The problems were serious because the lack of maintenance dated back a number of years.
…What needed to be replaced was done, and without extravagance, only the minimum.
… [T]he work done … was in the nature of repairs.
Neal Armstrong. Summary of Parent v. Agence du revenu du Québec, 2023 QCCQ 10440 under s. 18(1)(b) – capital expenditure v. expense – improvements v. repairs.