Morris – Tax Court of Canada finds that s. 18(3.1) does not apply to “general repairs and cosmetic touch-ups"

S. 18(3.1) requires the capitalization of various expenses which are incurred during the period of "construction, renovation or alteration" of a building.  Campbell J found that this phrase did not encompass "general repairs and cosmetic touch-ups" such as roof repairs and replacing flooring and closets.

Neal Armstrong.  Summaries of Morris v. The Queen, 2014 DTC 1149 [at 3481], 2014 TCC 142 under s. 18(3.1) and s. 18(1)(a) – Start-up and liquidation costs.