Capital cost

This is the amount on which you first claim capital cost allowance. The capital cost of a property is usually the total of:

• the purchase price (not including the cost of land, which is usually not depreciable);
• the part of your legal, accounting, engineering, installation, and other fees that relates to the buying or construction of the property (not including the part that applies to land);
• the cost of any additions or improvements you made to the property after you acquired it, if you did not claim these costs as a current expense (such as modifications to accommodate persons with disabilities); and
• for a building, soft costs (such as interest, legal and accounting fees, and property taxes) related to the period you are constructing, renovating, or altering the building, if these expenses have not been deducted as current expenses.

Forms and publications

• Guide T4002, Business and Professional Income