Capital cost
Capital cost is generally the taxpayer's full cost of acquiring the property. The capital cost of a property is usually the total of the following:
- the purchase price (not including the cost of land, which is not depreciable)
- the part of your legal, accounting, engineering, installation and other fees that relate to buying or constructing 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)
- 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
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